One Strategy on Closing the Sale of Your Business

So, the economy has been very bad, but you have been running a business for 30 some years and you would like to sell your business. Under the circumstances, you might be better off doing an “earnout.” That means that instead of a lump sum payment now, you would work out a structured payment over a set period of time. The payment could be tied to gross sales or to gross profit or to net income. This would allow the new owner to hopefully earn a net income from the business and buy the business from you using that income. He would not have to put a huge amount of capital down to secure the new business and he would have time for the economy to improve. You would also be able to sell your business.

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One Way to Close the Sale of a Business