You consider the net being divied under whatever schedule negotiated to be going towards paying back the principle. + whatever multiple (1.5x, 2x, etc) you agreed upon to ensure the loan.
$2mil @ 2.33x 30%net would be 30% profit returned until $4.66mil repaid.
[–] ihaphleas 0 points 2 points 2 points (+2|-0) ago
No. Do they consider the loan repaid after the principle is paid back? Or do they have a continuing interest in the business?
[–] virge [S] 0 points 1 point 1 point (+1|-0) ago
You consider the net being divied under whatever schedule negotiated to be going towards paying back the principle. + whatever multiple (1.5x, 2x, etc) you agreed upon to ensure the loan.
$2mil @ 2.33x 30%net would be 30% profit returned until $4.66mil repaid.