How Do I Sell a Portion of My Business?
Allocating part of the purchase price to a consulting arrangement, whereby a stock seller sticks around to provide operations advice for cash. Buyers will never know everything about a prospective acquisition before they purchase it. Contracts can be constructed, however, to insulate a buyer from the risks.
How does a buyer or seller buy a business?
A buyer can acquire a business in two general ways. First, he or she can buy company stock from shareholders—a “stock sale.” Second, he or she can buy the company’s assets, from the entity itself—an “asset sale.” Tax and liability consequences vary depending on what, exactly, is bought.
