Selling a business is rarely as simple as agreeing on a price. How that price is paid, the deal structure , can dramatically affect how much money a seller actually receives, when they receive it, and how much risk they continue to carry after closing the deal. There are many factors that determine what terms a seller receives. By far the most important factors are 1) the unique characteristics or value of the company itself, and 2) how effectively the sale process encourages

Buyer competition turns a business sale into a market. And markets, unlike individual buyers, rarely underpay. Creating competition for your business isn’t just about securing the best price and terms, it’s about actually closing a deal. Buying a company is expensive and risky, and deals often fall apart before they close. But a buyer who has successfully navigated a competitive sale process is far more likely to follow through on their offer and close the deal they agreed to

Most business owners imagine that when they sell their company, they’ll receive the full purchase price in cash at closing. In reality, that almost never happens, especially in the lower middle market (companies valued between roughly $3 million and $50 million in annual revenue). Buyers frequently structure deals so that a portion of the price is deferred. This not only aligns post-closing incentives between buyer and seller but also makes the acquisition more financially fe