I am selling my business. How can I make sure the buyer pays me?
Mr. Cohen will use his more than 25 years of handling the sales of businesses to suggest to the seller the variety of mechanisms available to increase the likelihood of receiving the payment required by the contract. Due diligence on the buyer’s background, personal guarantees, security interests in the buyer’s other assets or businesses, penalty provisions, and a security interest and financing statement on the business being sold, are some of the typical ways to ensure payment. Each transaction is unique, however, and will require that the attorney and client discuss all the risks, and all the possible methods of reducing the risks, before finalizing the documents.