The sale of a business to a third party is a great business succession strategy. While a sale is a complex and time consuming process, a business owner needs to know when to push the negotiations and when to hold back. One issue that can derail a negotiation is whether or not the seller of a business should insist on a deposit, a break fee or neither.
Firstly, what’s the difference between a deposit and a break fee? A deposit is one way of confirming that a buyer is serious.
Earn-outs are very common these days in transactions where an owner is selling a business. I’m working on a number of transactions right now that ... Continued
In my last article, I discussed the concept of the earn-out. I mentioned that an earn-out is simply the method by which a purchaser seeks ... Continued
Many privately owned businesses have more than one owner. This can be beneficial to a business, but it also poses its own problems. Sometimes one ... Continued