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.