What is the most appropriate source of financing for key managers looking to buy out John Mayer's architectural firm?

The most appropriate source of financing for key managers looking to buy out John Mayer's architectural firm is a seller note. A seller note is a form of financing that involves the seller (in this case, John Mayer) agreeing to accept a promissory note from the buyers (the managers) as part of the purchase price. This arrangement allows the buyers to finance a portion of the acquisition without requiring immediate cash. It can make the buyout more feasible by providing the buyers with the necessary funds while still enabling the seller to retain some financial interest in the company.

In scenarios such as this, seller financing is often advantageous because it demonstrates the seller's confidence in the buyers and the continued success of the firm. Additionally, seller notes can provide flexibility in terms of repayment timelines, interest rates, and terms compared to traditional financing methods.

Other financing options like revolving credit and term loans typically require the buyers to have a strong financial history and collateral. Bridge loans are short-term solutions designed to cover immediate expenses until long-term financing is secured, which may not be ideal for a buyout situation that often involves longer-term planning and financing needs.