B. What Price will be Paid, and When and How will that Amount be Given to the Seller?
Arriving on a dollar amount for the value of a business is only one element of the price, and it is rarely as simple as deciding on a price and paying that to the seller in a particular sale date.
The business will probably be active around the sale date, which means inventory, accounts receivable and other items will be in flux. Also, a cautious buyer may insist that a portion of the price be held back for a certain period to ensure that information given by the seller is in fact correct or that profit expectations are met. Finally, you may be unable to pay the price in a lump-sum and will need to pay in monthly or annual instalments.
3. Negotiate the Other Terms
Contract terms are not just about the structure of the purchase, sale date and whether there will be a personal indemnity if the seller is a company. However the number and type of other terms to be negotiated can vary depending on the risks associated with the business.
For example, in an asset sale of a business with many employees, the seller may insist that you take on all of the employees, while you may want only a handful of them. The seller may also refuse to fire the employees on the eve of the purchase. Even if you intend to re hire the employees after you have purchased the business, this is an important process to go through as it can influence the amount of severance you might have to pay an employee should things do not work out after the change in ownership
To prevent the seller, or the owner of the seller (if the seller is a company), from creating a competitor business after the sale, you should insist that he or she sign a “Non-Competition Agreement”.
B. What Price will be Paid, and When and How will that Amount be Given to the Seller?Arriving on a dollar amount for the value of a business is only one element of the price, and it is rarely as simple as deciding on a price and paying that to the seller in a particular sale date.The business will probably be active around the sale date, which means inventory, accounts receivable and other items will be in flux. Also, a cautious buyer may insist that a portion of the price be held back for a certain period to ensure that information given by the seller is in fact correct or that profit expectations are met. Finally, you may be unable to pay the price in a lump-sum and will need to pay in monthly or annual instalments.3. Negotiate the Other TermsContract terms are not just about the structure of the purchase, sale date and whether there will be a personal indemnity if the seller is a company. However the number and type of other terms to be negotiated can vary depending on the risks associated with the business. For example, in an asset sale of a business with many employees, the seller may insist that you take on all of the employees, while you may want only a handful of them. The seller may also refuse to fire the employees on the eve of the purchase. Even if you intend to re hire the employees after you have purchased the business, this is an important process to go through as it can influence the amount of severance you might have to pay an employee should things do not work out after the change in ownership เพื่อป้องกันไม่ให้ผู้ขาย หรือเจ้าของผู้ขาย (ถ้าผู้ขายเป็นบริษัท), การสร้างธุรกิจคู่แข่งหลังการขาย คุณควรยืนยันว่า เขาหรือเธอลง "ไม่ใช่แข่งขันตกลง"
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