Selling Your Business - Structuring Earnouts and Deferred Payment Plans
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, including:
- 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).
Download a copy of Selling Your Business - Structuring Earnouts and Deferred Payment Plans to help you with your exit strategy.
Last Updated: 14-April-2016