Setoff Agreement for Mutual Debts

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.