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  • Writer's pictureAmi Kassar

AmiSight 5/23: Structuring a Sales Agreement for Your Business

When structuring a sales agreement for your business, it's crucial to understand your cash needs at closing and work closely with financial advisors to plan for post-tax proceeds and retirement. Buyers may offer various payment structures, like deferred notes, performance-based earnouts, or stock, which come with risks and no guarantees. It's important to treat non-cash payments as bonuses and be cautious of potential pitfalls, such as subordinated loans or the company's future performance under new ownership. Ultimately, protecting your interests in the sales agreement can help ensure financial security, regardless of the business's future trajectory.

I expand on this topic in my 21 Hats column. To gain a deeper understanding, you can read the full article by following the link below.

Sales Agreement

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