If your business is incorporated, you have a very important decision to make: will you sell the assets of the business, or the stock? (Unincorporated businesses don't have this option, or this ... |
Aside from terms relating to what you are selling with the business, terms relating to payment are the most important, and need to be generally agreed upon before the |
Of course, the best kind of deal is where you receive the entire purchase price for your business, in cash, at the time of the closing. With this kind of deal, you could walk away from the business, ... |
One important question that a buyer is likely to have is, are you willing to finance at least part of the deal? This is a very fair question — some advisors estimate that |
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 ... |
