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What is the structure of a LMA?

A

amfmhdst

Guest
I would like to know how the structure of a LMA is set up. Specifically, what percentage is charged monthly. I did some research and found information on a station whereas a LMA, (w/Option to buy), deal was done for a radio station. It's was a 2 1/2 year LMA where the purchaser would pay an option extension fee of 8.1% p.a of the purchase price for the first 18 months of the option and 8.5% p.a. for the last year.

Does this percentage seem correct? I was curious, as to whether or not anybody has any experience in this matter. If so, can you be so kind to explain.

Thnxs
 
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