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Structuring your sale

Tailored deal structures that maximise value.

One size does not fit all

The way your business sale is structured can have a major impact on your final payout, tax position, and the smoothness of your exit. At Business Partnership, we help you navigate the different deal structures, so you choose the one that best aligns with your personal goals and business circumstances.

From a clean break to a phased exit, we work with you to understand what matters most. This can be maximising your sale price, reducing risk, or ensuring continuity. With our guidance, you can secure a deal that works on your terms, while still appealing to the right buyer.

Common Sale Structures

Cash on Completion

This is the most straightforward and preferred option for many sellers.

What it means: A full payment on the day of sale.

Best for: Sellers looking for a clean break and immediate funds, such as those retiring or dealing with health concerns.

Handover: A transitional handover period is typically agreed to ensure a smooth transfer of the business and key customer relationships.

Deferred Payments

Deferred payments can offer flexibility for both the buyer and the seller.

What it means: A portion of the sale price is paid over an agreed schedule (e.g., monthly, quarterly, or annually). They are sometimes found as part of a MBO (Management Buy Out) because the parties are previously known to each other.

Benefits: Enables buyers with limited upfront funds to proceed, potentially accelerating the sale process.

Considerations: Payments should be unconditional, and sellers can seek interest and security to reduce risk.

Earn-Out Agreements

Earn-outs tie part of the sale price to the future performance of the business.

What it means: The seller receives an initial payment upon completion, with future payments linked to business performance post-sale (e.g., revenue growth or customer retention). If the business reaches the goals, the earn out payments are made. If it doesn’t, they’re not made.

Benefits: Sellers may achieve a higher overall price if the business performs well post-sale.

Considerations: Earn-outs involve risk, can require the seller to stay involved for a prolonged handover period, and may not suit those looking for a quick or guaranteed exit.

Investment Deals

This structure is ideal for businesses seeking to grow with external investment.

What it means: The seller retains a stake in the business while bringing in a new investor to fund growth.

Benefits: Allows the owner to remain involved while benefiting from external expertise and resources. The ultimate exit may involve a smaller stake but at a higher valuation.

Best for: Owners looking to scale their business before a full exit.

Why choose Business Partnership?

With decades of experience and a trusted network of Regional Partners, Business Partnership offers a personal and practical perspective on structuring business sales. While final decisions will also involve your accountant or tax adviser, we help you interpret different offer structures, understand the implications, and guide you towards deal structures that align with your goals.

Personalised Support

You’ll work with a local Regional Partner who offers tailored advice and hands-on guidance from start to finish.

Proven Expertise

With over 45 years experience across all industries, we know how to structure deals that close on terms that work for you.

Comprehensive Knowledge

We combine insights on sale structures, deal negotiation, and market trends to ensure your exit is both financially and strategically sound.

Speak to Us today

Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.

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