The way you structure the deal affects how much money you get upfront, tax implications, and your involvement after the sale.
Key Deal Structure Options:
| Structure | Pros | Cons |
|---|---|---|
| Full Cash Sale (80%-100% upfront) | Quick exit, minimal risk | May limit buyer pool, higher taxes in one year |
| Earn-Out (Payments over 1-3 years based on revenue retention) | Maximizes value, ensures smooth transition | Delays full payment, depends on firm performance |
| Seller Financing (You finance part of the deal, e.g., 30%-50%) | Expands buyer pool, potential for higher sale price | Involves risk if the buyer struggles |
| Merger with Buyout (Gradual transition over 1-3 years) | Stability for clients & staff, steady payout | Slower exit, requires long-term involvement |