Not every dollar of a business sale has to come at closing. In fact, some of the best deals for both sides are structured across time — and understanding these tools can help you negotiate a deal that truly works for everyone.
A seller note allows the buyer to pay a portion of the purchase price over several years, financed by the seller. It signals confidence in the business's future and often makes the difference in getting a deal done, while giving the seller an ongoing return. An earnout ties part of the price to the business hitting certain performance targets after the sale — useful when a seller believes strongly in continued growth and wants to be rewarded for it.
Transition or consulting pay compensates a seller for staying involved after closing, whether that's a few months of overlap or a longer advisory arrangement. This isn't just a courtesy to the buyer. It protects the seller's legacy by helping ensure the handoff actually succeeds.
These structures aren't concessions — they're tools that align incentives. A buyer who is financially connected to the business's success after closing is a buyer who's motivated to run it well, which is exactly what most sellers want.
Curious how a deal like this might apply to your business? Reach out to Promontory Capital Holdings to talk through the options.