Deposit, Break Fee or Neither?


The sale of a business to a third party is a great business succession strategy. While a sale is a complex and time consuming process, a business owner needs to know when to push the negotiations and when to hold back. One issue that can derail a negotiation is whether or not the seller of a business should insist on a deposit, a break fee or neither.

Firstly, what’s the difference between a deposit and a break fee? A deposit is one way of confirming that a buyer is serious.

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