The document discusses financing options for the sale of financial advisory practices through Skyview Center. It outlines the advantages of bank financing for sellers and buyers, including increased liquidity at closing and longer loan terms. It then describes different financing structures like seller's notes, conventional loans, and SBA loans. The document provides examples of financed transactions including a tranche sale, partial sale, and ESOP succession. It emphasizes the importance of banking relationships, seller notes, buyer equity, and contractual flexibility in closing deals with bank deposits.

1. SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
PRESENTED BY:
SCOTT WETZEL, JD
Managing Partner
AARON HASLER
Managing Partner
M&A FINANCING

2. How important is it to you, when considering
retirement, that your prospective buyer has
access to cash-at-closing financing for a
considerable percentage of the purchase price?
How important is it for your buyout partners
to be able to access financing in order to
implement the deal?
When evaluating prospective buyers for your
practice, which would you prefer?
?
?
?
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

4. SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 4
Correspondent Lending Platform
Conventional & SBA
Correspondent lender
providing timely and cost
effective bank financing
to independent and
registered financial advisors
to promote the preservation
of small business ownership
in the financial services
industry.

5. SALE
FINANCING
OPTIONS

6. Advantages of Bank Financing
Seller Advantages
• Increased liquidity at closing
• 70% - 80% payable at close
• Escrow 20% - 30% payable
over one to three year period
• Decreased risk
6
Buyer Advantages
• Deal consummation
• Longer loan terms
• Reduced monthly payments
• Borrowing scale
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

7. Financing Structure Summary
Seller’s Note
• 4-5 year terms fully
amortizing
• Fixed rates
• No lien on residence
• Flexible conditions
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
7
Conventional
• $1MM minimums
• 7 year terms
• 10 year amortization
• Fixed rates
• No lien on residence
• Efficient
• 27 documents to close
• 30 – 45 days to close
SBA
• $350k minimums
• 10 year terms
• 10 year amortization
• Floating rates
• Fixed option
• Lien placed on residence
• Cumbersome
• 151 documents to close
• 3 – 6 months to close

8. SALE
STRUCTURAL
OPTIONS

9. Sale Structural Options
Tanche Sale
Multiple liquidity events
over a predetermined
time line.
• 3 – 10 years
9
Partial Sale
Senior partial sale of
less than 100% of the
practice.
• Subsequent
purchases not
always set
Complete Sale
Sale of 100% of
the practice.
• Senior advisor
• Junior advisor
• “tuck-in”
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

10. Structural Financing Eligibility
Seller’s Note
• Tranche sales
• Partial sales
• Complete sales
• Senior
• Junior “tuck-in”
SBA
• Complete sale only
• Seller must depart
the practice
entirely within 12
months
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
10
Conventional
• Tranche sales
• Partial sales
• Complete sales
• Senior
• Junior “tuck-in”

11. CASE STUDIES: Funded Loans
Tranche Sale
• $4.2MM valuation
• Internal buyers
• 25% buyout
annually over a
5 year schedule
• Deposits
Partial Sale
• Valuation $6.8MM
• Internal buyers
• Sole owner sold 48%
• Two junior partners
• 24% each
• $3.4MM bank financing
• Deposits
11
ESOP Succession
• $17MM valuation
• ESOP
• $5MM seller note
• $5MM refinance
• $7MM cash to seller at
close
• Deposits
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

12. Optimal Deal Structure
95%BANK FINANCING
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

13. Keys to Close Deposits
• “Banking relationship” with borrower
• Operating account
• Seller proceeds
Seller Note(s)
Buyer Equity
• “Skin in the game” – 5% to 10%
Contractual/Structural Creativity
13
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

14. Mitigating Factors
• Loan Amount
• Character (credit)
• Cash Flow
• Loan devalue
SkyView’s Standard
Loan Structure*
* This above constitutes a proposal and is not a commitment to lend.
The fee, rate, terms, and conditions are for informational purposes
only and will require formal credit underwriting and approval.
SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391

15. SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391 15
NEXT STEPS:
Pre-Qualification

16. SKYVIEW CENTER | 294 Grove Lane East | Suite 120 | Wayzata, MN 55391
16
(866) 567-6282
Q&A