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Selling Your Business - Structuring Earnouts & Deferred Payment Plans
Are you planning to sell your business? Let this 8-page article guide you through the issues to consider if the sale of your business has an earn-out component or a deferred payment (seller financing) option.
The article assumes that you are selling to an arm's length third party. Topics discussed include:
- how much money the buyer should put in,
- negotiating an interest rate,
- securing the unpaid balance of the purchase price,
- considering rights of setoff,
- determining a reasonable payout timetable, and the consequences for missing a milestone,
- determining how profits will be used,
- planning for unforeseen events (death, disability, default).
Selling Your Business - Structuring Earnouts & Deferred Payment Plans is in Adobe PDF format and is copyrighted by the author.
Download: Selling Your Business - Structuring Earnouts & Deferred Payment Plans
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