Mundo Sanchez walks through four levers for restructuring debt deals: increasing cash-out, refinancing, reducing leverage, and trading surplus funds versus seller financing. Each lever adjusts based on what the seller wants.
So there's a lot of different mechanisms that strings you can pull to make numbers go up or down and to restructure. So you could increase this cash, cash out, refinance amount or you could decrease the overall leverage. Right? If I go down and say, hey, I'm going to take out less now we know this number has changed, right? And if you want to see how you can play around with it, you know, this is how you could see the numbers change. You could also increase the cash to seller because if you increase the cash to seller, you've reduced your seller finance amount. So you're taking seller finance amount off the table. But when you're, when you're doing that, you're also decreasing the amount of surplus funds you're taking, if that makes sense. So there's a lot of different mechanisms that you strings you can pull to make numbers go up or down and to restructure. That's the, that's why I love Morbi method and like these types of debt structuring because I can like depending on what the seller wants. I have a bunch of different strings that I can pull to work.
