![]() ![]() Julie wants to limit the term of the agreement to three years. Premier’s business is heavily impacted by changes in technology, and supply chain issues can create inventory shortages. The three agree on an installment sale approach.Ī longer term increases the risk of collectability. Julie owns 70% of Premier Sporting Goods, and has two partners who own the remaining 30%. If your business is structured as a partnership, or includes multiple owners in an LLC, you must get approval from each partner or owner. Here are some factors that a seller must consider before finalizing a sale agreement: There are risks and rewards for a seller, however, and a business broker can help you make an informed decision. If bank financing isn’t needed, you can entice the buyer to close a sale, and negotiate a higher price. ![]() If you’re willing to provide financing and accept payments over time, you’ll attract more buyers. The seller chooses to finance the purchase by delaying full payment and receiving cash over time. To illustrate, let’s assume that Julie is the majority owner of Premier Sporting Goods, an online business that sells equipment for each major sport.Īn installment sale means that the buyer’s cash payments are spread over time, and the purchaser does not pay the entire amount at closing. Before making a decision, you need to understand the pros and cons of an installment sale of an entire business. One option is selling a business with installment payments. Finding the right buyer for your business can be challenging, and the sales agreement can take several forms. ![]()
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