Home Business Docs Buying or Selling a Business Selling Your Business - Structuring Earnouts & Deferred Payment Plans
Selling Your Business - Structuring Earnouts & Deferred Payment Plans E-mail

 

Let this 8-page article guide you through the issues to consider when selling your business with an earn-out component or on a deferred payment (seller financing) basis. 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.

 

 

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