business sale structure

January 18, 2019

Structuring A Business Sale

Sellers beware! A poorly structured business deal can eat up half of the proceeds of a sale.  Professional assistance from a business broker is essential when crafting the deal, which includes selecting the right sale agreement. Even after a general agreement is reached, determining the purchase price of your business isn’t as straightforward as it may seem. The purchase price can be allocated into various tangible assets and/or intangible assets and liabilities. All of these have tax implications for the seller and buyer. It’s important to select the appropriate type of agreement, especially if you want to maximize profits. The basic types of sale agreements are stock sales, mergers, and asset sales. Each type affects the sell-side and the buy-side of a deal. Stock sale […]