Josh Li

How Josh bought his own clinics

Josh bought two of his own clinics with 100% vendor finance (seller finance): no bank and no equity partner. The sellers were paid over time out of each business’s own cash flow. It works when an owner cares more about the right successor, their staff and a steady income than about a lump sum on day one, and it’s the reason he believes most owners can grow by acquisition long before they think they can afford to.

What G&L M&A Advisory does

The firm works with owners of businesses doing around $1M+ in revenue. Together they find the target, often a competitor or a retiring owner’s business, structure the deal and line up the financing. The aim is a signed letter of intent within 90 days on an acquisition that can double or triple the business, structured at a debt service coverage ratio of around 1.5x and over-financed so working capital and closing costs are covered. It’s done with the owner, not for them, and comes with a 7-day money-back guarantee.

The structures behind it

Deals are funded with a mix of commercial (senior) debt, seller finance and seller rollover:

• 60/40: 60% commercial debt and 40% seller rollover, with no personal guarantee. The lender takes security over 100% of the business’s assets instead.
• 70/20/10: 70% commercial debt, 20% seller finance and 10% seller rollover. Most retiring owners like this one.
• 100% vendor finance: the seller funds the whole price and is paid over time from the business’s cash flow.

Read more: How to Buy a Business With No Money Down · Seller Finance Explained: How Vendor Finance Works When You Buy a Business · Seller Rollover Explained: How Equity Rollover Works When You Buy a Business · The 60/40 Deal Structure: 60% Commercial Debt, 40% Seller Rollover · The 70/20/10 Deal Structure: 70% Debt, 20% Seller Finance, 10% Rollover · 100% Vendor Finance: How to Buy a Business Without a Bank.