Separate a price from a payment promise
Cash paid at closing and a seller note are different assets. A note depends on future payment, so understand the buyer finances and the proposed protections.
Minneapolis Business Brokers Point gives owners a way to request a valuation conversation before weighing offers with different payment terms.
List cash at closing, deferred amounts, interest, payment dates, and any amounts tied to future performance. Keep a buyer projection separate from a binding payment obligation.
Understand the place of other lenders
If the buyer uses bank financing, the lender may require terms that affect your note. Your attorney should explain security, lien priority, and any required standby arrangements.
Do not assume a personal guarantee or a lien eliminates risk. Have your advisers explain what could happen if the buyer cannot make the payments.
Calculate what is available after the sale
Subtract debt payoffs and selling expenses, then have the CPA model taxes and payment timing. That is closer to the money available for your next step than the gross sale price.
Transition commitments also affect the offer. Record the expected training period, duties, time limits, and compensation instead of relying on an informal promise to help.
Review the entire agreement before accepting
Financing conditions, diligence rights, exclusivity, and closing deadlines all belong in the comparison. A proposed higher price can come with a less certain path to completion.
Use qualified legal and tax advisers for the documents and consequences. A broker can help explain commercial tradeoffs, but a valuation request is not financial or legal advice.