Seller Notes Modeling

This problem practices how to think about seller financing in an acquisition model, including where it belongs in the sources and uses schedule, how it affects the capital structure, and how to reflect its interest expense. Interviewers ask this because seller notes are a common deal feature and a candidate should understand that financing terms can affect both transaction funding and post deal earnings. The question also tests whether you can recognize special features such as subordinated status, fixed coupon terms, and optional PIK or conversion provisions, and know that these features must be incorporated consistently across the model.