What will be the net proceeds of the sale?

Net proceeds of a sale is the money you will be left with after the transaction fees and taxes due are subtracted from the purchase price. Knowing this number is more important than knowing the valuation since it is the sum of money that will be available to either fund your retirement or pursue another opportunity. Additionally, most transactions are structured with a portion of the purchase price paid with deferred payments that come in the form of sellers’ notes or earn outs. Understanding the tax and financial effects of deal structures with these kinds of terms is also critical. As you may have concluded, involving your accountant and financial planner in the sale process will be an important step to making an informed decision.