Paul H Burgess & Co.

"Yielding a Better Result"

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Checklist for Sellers

  • How can I best take advantage of the preferential capital gains and dividend tax rates?
  • What should be in the non-disclosure agreement and/or letter of intent?
  • Can the stock or membership units be sold instead of the assets?
  • What taxes are due and how can they be reduced or deferred?
  • If the purchase price is financed, should a personal guarantee be required and what are the appropriate security interests and liens?
  • Should part of the purchase price include a covenant not to compete or a consulting agreement?
  • What warranties will the purchaser want from me and what warranties should I provide?
  • Should any “earnout” or contingency payments be considered?
  • Will the purchaser desire to retain me as an employee and if so, upon what terms and conditions?
  • Are there any assets I will want to retain or liabilities the purchaser will want me to assume?
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