Buying a marketing agency with no money down: 100% seller-financed share purchase with earn-out
100% seller-financed with performance-based earn-out provisions.
By Malcolm ZoppiMarketing and media
Key facts
- Deal type
- Share purchase
- Sector
- Marketing and media
Background
Our client, an established operator in the marketing industry, approached us seeking to acquire a profitable marketing agency to drive growth. The primary challenge was achieving this expansion without risking their own capital or taking on expensive external financing.
The Solution
We structured the acquisition as a share purchase deal with 100% seller financing, incorporating earn-out elements. This innovative approach allowed our client to acquire the target business while minimizing financial risk and aligning the seller's interests with the future performance of the company.
Key Deal Features
- Structure: Share purchase acquisition
- Financing: 100% seller-financed with performance-based earn-out provisions
- Risk Management: No upfront capital required from the buyer
- Performance Alignment: Earn-out structure ensuring seller commitment to business success
"This deal demonstrates how creative structuring can overcome financing challenges in business acquisitions."
Malcolm Zoppi, M&A Solicitor