Dive into the challenges of funding transitional salaries for sellers during business acquisitions. Learn effective strategies and real-world examples that help.
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volunteer_activism ADVICE
Project Cost
Account for the seller's transition salary in your total investment.
Base the purchase price on the value of the cash flow relative to your overall investment, not just the upfront cost.
volunteer_activism ADVICE
Seller Transition as Investment
Treat a seller's transition like any other business investment.
Factor the cost of their salary into the overall deal, potentially lowering the purchase price.
volunteer_activism ADVICE
Securing Seller Commitment
Secure the seller's commitment to training by structuring payments.
Hold back a portion of their compensation, releasing it monthly upon successful training completion.
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***New Video Alert!
Tim is making an offer on a business and needs the seller to stick around for a year of training.
Where does the money come from for his salary?
Tim needs a salary too.
Cash flow conundrum.
I’ll tell you your options and how you need to think about this scenario.
Check it out right here: https://youtu.be/KID93MAaq8I
Cheers
See you over on YouTube
David C Barnett
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