Handover Period

The Bigger Picture In Selling Your Business

A period of time following the completion of a business sale during which the seller continues with the business sold in order to ensure non-disruptive and successful handover of the company (practically) to the buyer. This could be from a few months to a few years depending on what has been agreed between the two parties.

The seller may negotiate a higher purchase price for the business and/or to be paid a good remuneration for the handover period and his/her services thereof.

During the handover period, the seller helps the buyer to hit the ground running with the new business acquisition.

It is worth noting that, this arrangement may be in the interest of the seller too for various reasons: for example if contractual terms like earn out and deferred payments have been agreed in the sale.

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