The Bigger Picture In Selling Your Business

What Does Consideration Mean?

In the case of selling a business, consideration is the contractual purchase price and payment arrangement agreed between the buyer and the seller.

With a consideration agreed, a business purchase contract – i.e. sale and purchase agreement (SPA) – can then be drawn specifying and detailing purchase of the business by the buyer from the seller. Consideration could be in any form of purchase transaction: in cash, a shares arrangement or seller financing.

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