Seller Notes In M&A

This question practices a core M&A concept, the different ways a buyer can finance part of the purchase price and how that affects the seller’s incentives. A candidate should understand how deferred consideration works, how it changes the seller’s role from owner to creditor, and why that matters for transition planning, risk allocation, and post-close behavior. Interviewers ask this because they want to see whether you can connect deal structure to transaction economics and to the motivations of the parties involved, which is a key skill in accretion/dilution and broader M&A modeling.