Selling Your Business - Structuring Earnouts and Deferred Payment Plans

Are you planning to sell your business to an arm's length third party?

This free article will 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. Selling Your Business - Structuring Earnouts and Deferred Payment Plans discusses the following topics:

• 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 and Deferred Payment Plans is in Adobe PDF format and is copyrighted by the author.