Firewalls: Protecting the Proceeds from your Business Sale Transaction


Many business owners make the mistake of thinking that the only objective of a seller of a business is to get as much money as possible on closing. While getting a high price is one thing, that’s no solace if the purchaser is able to claw some or all of it back after the sale.

An important role for the seller’s lawyer is to build legal “firewalls” to stop the purchaser from doing this. In this report, I will discuss the different kinds of claw back language that can be inserted in the sale contract, and how your lawyer can build firewalls against the claw back of the sale proceeds.

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