Where there is disagreement about how much the company is worth, it's fairly common to include an "earnout" as one of the terms of the deal. |
If it seems likely that there are significant unknown liabilities associated with your business, the buyer may be willing to assume them if some part of the purchase price is placed in escrow (that ... |
If one corporation sells out to another, it's often possible to structure the deal as a tax-free reorganization. This means that essentially no capital gains ... |
It's a rare buyer who won't want you to show him or her the ropes, by remaining involved with the business for a while after the sale. Often the deal won't fly unless you agree to this. At a minimum, ... |
When an employment contract is used in a business sale, the seller becomes an employee of the new owner. This is generally a short-term solution; few entrepreneurs can successfully make the ... |
When the buyer of a business is an unrelated third party, consulting agreements are more frequently used than employment agreements. Usually the buyer will ... |
One of the last things that a buyer wants to happen is for you to sell your company, and then turn around and start another one just up the street, taking most of your customers with you. For that ... |
When you sell your business you're likely to face a significant tax bill. In fact, if you're not careful, you can wind up with less than half of the purchase price in your pocket, after all taxes are ... |
When you sell your business, you are really selling a collection of assets, some tangible (such as real estate, machinery, inventory) and some intangible (such as goodwill, accounts receivable, a ... |
If you are willing to finance the sale of your business by taking back a mortgage or note for part of the purchase price, you might be able to report some of your capital gains on the installment ... |