It's always nice to hear from someone who built a business and then sold it for a profit!

QUESTION.
I have a minority ownership in a small company. We have been in business for two years. A competitor has approached us about selling the company to them. They would like to pay an amount upfront and the remainder would be an "earn-out," which I believe is typical. The earn out would likely be over a 6 month period. We are in a services based business. Also, I would likely be employed by the new company for at least six months. I would like your advice and any thoughts you have concerning what to be cautious of and any "pitfalls" to avoid. This has been "fast-tracked" because our busy season will start in mid-May, so this transaction would likely be complete before the end of April, so any expedited advice would be greatly appreciated. Thank you.

ANSWER.
There are books written on the subject of your email. I highly recommend you get a copy of the following book and read it cover to cover. See BUYING AND SELLING A BUSINESS.

Read the book review I wrote for it. I thought it was a wonderful book. And it is written by an attorney. When you are done reading the book and still have questions, then feel free to send me an email with pointed questions. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com