Deferred payment based on future profitability is not generally recommended and can lead to arguments as to the accuracy of the disclosed financial figure. Payment on completion should be regarded by the seller as reasonable proceeds for the sale of his business. So that if he does not receive a penny more as a result of the seller financing he is not out of pocket.

In other words in my opinion seller financing should only be used to ensure that the business is sold for a top price, and if possible the loan should be secured on the business assets he is selling.

1 – is the amount of money people are prepared to pay for a business, but I suppose when you get your head around it in regards to value, tax saving etc, its more digestable, but maybe people rush because they want to get their hands on the cash before they get found out!

2 – is the amount of people out there that offer ‘advice’, and once you meet a few financial advisers, brokers, accountants etc they all have their up front fee and angle! and they all tell you the others are talking shite…!

3 – people keep telling me to ask your accountant? how would they know anything about selling a business when their paid to do the books? Is it typical to involve your accountant in these matters?

Anyway the long and short of it is that I spoke to someone who’s actually done it in my own industry…so finally seemed to get nearer the truth, and he told me another way of doing things!

I’m not planning to sell my business at the moment, but its good to be prepared as you never know whats round the corner…i’m much more philsophical follow the birth of my son 18 weeks ago…:-)

Help!