The Importance of Vendor Repayment in a Deal

The vendor repayment is an interesting one because it does two things. First of all, it clearly incentivizes them to make sure that post transaction, post handover management, they still want the business to trade really well. How they are invested in the deal going forward can take different forms. It could be rolled equity. Right? There's no problem with them having repayments of that loan note throughout the period of our loan. You know, we want to ask them to wait for five years to get repaid. The key from my side as a lender is to made sure that triggering payment under the earn-outs is net cash neutral.