And since that financing will only total $750K, the seller will net the same here as in the equity-based structure: ($50K) + $750K = $700K.In M&A practice, discounted cash flow methods and approaches using multiples are the most widely applied methodologies. Net Cash to Seller at Closing = ($50,000) In this case - I kid you not - the seller has to PAY to sell their business and wait for the rest of the money to come over time via seller financing.
