01) General
02) Prepare
03) People
04) SDE & EBITDA
05) Valuation
- 18 Differences Between Valuing Public and Private Companies
- Business Valuation & Return on Investment (ROI)
- Business Valuation Guide: Do I need a Valuation?
- Business Valuation Methods in a Nutshell
- Business Valuation Process
- Business Valuation Standards of Value & Fair Market Value
- Business Valuation: A List of Factors to Consider
- Can You Give me a Quick Opinion of the Value of my Business?
- Do Buyers of Businesses Pay for Potential?
- Is a Third-Party Business Appraisal Needed to Sell My Business?
- The Difference Between an Appraisal and a Valuation
- Why is the Range of Possible Values so Wide for a Business?
06) Buyers
- Dealing with Investors who Want to Buy Your Business
- How Long do Buyers of Businesses Stay in the Market?
- M&A Guide | Selling Your Business to a Competitor
- M&A Guide | Selling Your Business to Employees
- M&A Guide | The 4 Types of Buyers of Businesses
- Selling my Business to a Non-US Citizen or Foreigner?
- Why do Companies Acquire other Businesses?
07) Marketing & Screening
- Additional Ways to Market Your Company for Sale
- M&A Basics | Fishing vs. Hunting for Buyers of Your Company
- M&A Process | Using Targeted Campaigns to Sell Your Business
- Marketing a Small Business for Sale
- Process for Screening Buyers When Selling a Business
- Selling a Business | How to Screen Individual Buyers
- Should We Disclose our Revenue, SDE & EBITDA in Our Ads?
08) Meetings & Confidentiality
09) LOI & Negotiating
10) Financing
11) Deal Structure
- Allocation of Purchase Price & Taxes When Selling a Business
- Earnouts When Selling or Buying a Business | Complete Guide
- Escrow Holdbacks in M&A Transactions
- How Does Entity Type Affect the Sale of My Business?
- M&A Basics | Asset vs. Stock Sale
- M&A Basics | Can I Sell Part of My Business?
- M&A Non-Compete Agreement | A Complete Guide
- Transferring the Lease When Selling or Buying a Business
- What Happens to Debt when Selling a Business?
12) Due Diligence
13) Closing
14) Transition
M&A Seller Financing: Third-Party Loan Servicing
M&A Seller Financing: Third-Party Loan Servicing – An iGaming Perspective
As an advisor who has structured dozens of iGaming exits over the last decade, I can confirm that outsourcing note administration to a neutral servicer is no longer a luxury—it is a regulatory and relationship-management necessity.
A specialised third-party loan-servicing agent receives the buyer’s instalments, applies interest and late fees, issues 1098/1099 tax forms, and wires the net proceeds to you on schedule. In practice, this removes two chronic distractions in post-closing life: (i) chasing arrears and (ii) reconciling complex ledgers. The result is cleaner audit trails, lower AML exposure, and—crucially for betting deals—more time to steer the licence transition and retention campaigns.
What a Servicer Actually Does
Instead of a long checklist, think of the servicer’s workflow as a closed loop: onboarding the promissory note, automating ACH pulls from the buyer’s bank, allocating principal/interest in real time, and generating monthly and year-end statements for all parties.
Because interest, late-fee and maturity calculations are made inside their platform (rather than a spreadsheet), disputes are rare and easy to evidence. Automated Clearing House rails also mean funds arrive faster and with lower card-processing costs—an important edge when betting margins are tight.
Leading Note-Servicing Platforms
Servicer | Core Focus / Differentiator | Website | Phone |
---|---|---|---|
Automatic Funds Transfer Services (AFTS) | 24/7 Web-, Phone- & MobilePay modules for frictionless ACH pulls | afts.com | +1 206 254 0975 |
Payment Servicing Corporation (PSC) | Custom escrow instructions for owner-financed transactions | paymentservicingcorporation.com | +1 406 257 8186 |
Accruit | Combines note servicing with 1031 exchange infrastructure—useful for roll-ups | accruit.com | +1 866 397 1031 |
Escrow Services, Inc. | Wrap-around and second-mortgage specialists; strong FAQ library | escroserv.com | +1 800 654 7870 |
Midwest Asset Acceptance | Tier-1 primary & special servicing (work-out support for troubled notes) | midwestassetacceptance.com | +1 585 377 2810 |
Gregory Funding | Proprietary RMBS servicing platform; Fitch-rated for compliance rigour | gregoryfunding.com | +1 888 324 3578 |
All providers operate nationally and offer electronic disbursements to international sellers—a frequent requirement in cross-border iGaming exits.
Pros
Regulatory confidence: independent escrow satisfies gaming-commission segregation and AML rules.
Relationship shield: delicate payment-chasing is handled by a neutral party, preserving goodwill.
Data integrity: SaaS portals deliver auditable ledgers that dovetail with VDRs and post-merger earn-out tests.
Tax automation: 1098/1099 issuance and year-end summaries spare both sides manual effort.
Cons
Service fees: 0.25 %–1.00 % of the note balance annually, which can erode yield on smaller deals.
Onboarding lag: KYC/AML checks may add a week to closing if the buyer’s documentation is incomplete.
Less flexibility: payment-deferral amendments must flow through the servicer’s workflow, adding paperwork.
Data-privacy risk: although rare, a breach at the servicer could expose sensitive financial data.
Frequently Asked Questions
Q: Do gaming regulators insist on third-party servicing?
A: Not universally, but many require proof of segregated trust accounts. Using an established servicer satisfies that box without bespoke escrow arrangements.
Q: Can the buyer pre-pay without penalty?
A: Yes – provide the servicer with the promissory note’s pre-payment clause; they will calculate the exact payoff and remit funds accordingly.
Q: How quickly do ACH funds reach my account?
A: Standard settlement is T+1 US banking day; wires for EU-based sellers often clear the same day if instructions are on file.
Q: What happens if the buyer misses a payment?
A: The servicer issues a late-notice, applies contractually agreed charges, and escalates after the cure period. Meanwhile, your relationship with the acquirer remains cordial—crucial if you retain an earn-out or consulting role.
Leveraging a third-party servicer isn’t merely administrative hygiene; it is a strategic lever that lets iGaming sellers protect value, demonstrate compliance, and stay laser-focused on post-closing growth metrics.