Glossary
Seller financing
The seller of a business lets you pay them over time out of the profits.
Instead of paying $400,000 up front, you might pay $100,000 now and the rest over five years from the business you just bought. It is how a large share of small acquisitions actually get done.
It also aligns incentives: a seller who is being paid out of future profits has a strong reason for the business to keep working after they leave, and their willingness to accept it is a signal about the quality of what they are selling.