The Second Most Important Thing to Negotiate When Selling Your Business

When you get an acquisition offer for your business, it is natural to focus on the offer price, but your employment contract can be a key element of your remuneration.

I know, you don’t want to be an employee but, when you sell, you’ll likely have to sign on for a transition period or earn-out where you will officially be an employee again. The terms of this employment contract are a key element of any deal.

Just ask Eric Sit.

Sit’s company was acquired by Detection Technologies in 2013. Six months later, Detection was acquired and Sit lived to regret the employment contract he had signed.

Listen now to hear Sit’s episode and what he wishes he had thought about before his exit.

When Sit sold CyberWAVE, he was offered shares in Detection rather than cash because 70% of CyberWAVE’s revenue was coming from one customer. Sit could have lobbied for more of his proceeds to be paid up front had he had less customer concentration, something we help you eliminate during module eight of The Value Builder System™. Discovering the areas in your business that need improvement will help you maximize your price when you’re ready to sell. Get started by taking this 13-minute questionnaire.