$250k SDE Acquisition: Limited Downside, Big Upside

So you own more of the business than any other individual does.

But it's actually less than 50%. As you said, it's 40%. And so what does. So to the big question that is always so important is how to get debt to buy a business outside of the US where we're fortunate to have the sba. What does it look like in Finland?

Yeah, so I don't think it's, it's as well known, but there is actually a, a similar solution available in, in Finland. It's, it's called, the organization is called Finvara and they basically have different types of solutions for, for, for ownership transitions, different management buyouts and so forth. And I was actually able to, so I think it works on a high level, at least in a similar way as…

So they basically it's a government backed loan given by a private bank basically that you can get in Finland and that was what I used for, for my part of the, the acquisition.

So one of the features of the SBA is that yes, it's government backed, but what that enables is debt at better terms than the free market would offer by itself without government subsidy. So high leverage in a, in a great amortization period of 10 years. What is same thing here. What did that look like?

Well, the amortization period that I got that, that I felt probably maybe would have gone a little bit more, I don't know. But my amortization period is five years. So I think that's, that's the difference I think in, in terms of sort of the other option.

Without the government backing, I think the answer from the bank would have been a simple no. At least that's the feel that I got. But yeah. So the amortization period is five years.

I don't know if it would have been possible to stretch to seven, maybe 10 years. I doubt it. But what I was able to negotiate was a kind of balloon structure where I'm paying the interest only for the first time, three years. So that gives me a little bit more.

Yeah. Room to, to move.

Sure. And you said it was 80% of the purchase price, correct?

Yeah. And yeah, and then 20% cash.