Not all of the price is paid on the day
Many small business sales pay part of the price at completion and the rest later. This is normal, but the details matter a great deal.
Seller notes
A seller note is a loan from you to the buyer for part of the price, repaid in fixed amounts with interest. You know what you will receive and when.
Earnouts
An earnout pays more only if the business hits future targets. It can bridge a gap on price, but it depends on results you no longer control. Read the targets carefully.
Questions to ask
How much is paid on completion? What security do I have for deferred money? What happens if payments are missed? Your solicitor should review every answer.
Put it into practice
General guidance only, not legal, tax or financial advice.
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