There is a lot to think about when negotiating the sale of your business. What are the important elements of the deal for your specific business and for you? Think about (this is not an exhaustive list, but a good start!):
How long are you prepared to keep assisting the Buyer for after the sale has gone through (Settlement)? Will you keep working on in the business for 1 week, 1 month, 1 year? If a longer period than just a few weeks, will you be paid a wage or salary or some other extra compensation? Negotiate what you are happy with as part of the deal.
Will you be paid the entire Purchase Price on settlement, or will there be a deferred part of the Purchase Price or an ‘earn out’ where part of the Purchase Price is paid later subject to certain conditions being met (e.g. like a level of sales or otherwise)?
Do you have stock in your business – how will this form part of the deal? How is the stock valued?
Do you have employees in your business – will the Buyer be taking on all employees or not all? Talk to your lawyer about these things too as there is a bit of complexity to this and making sure you have covered all your bases and understand the implications of how employees are dealt with in the sale of your business.
Is it an Asset Sale or a Share Sale? Not sure what this means? You should in any case be talking to your accountant who can give you expert advice on this and what to think about.
Take expert advice from your accountant and lawyer as you step through the sale of your business, and don’t enter into binding terms and conditions with a Buyer until you have spoken with those advisors and sought their advice!