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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I have a widget business in the service industry. One of my

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I have a widget business in the service industry. One of my newest employees wants to buy the biz because she's been in the industry 10 years and see's an opportunity since I've let it languish while I moved out of state. Unfortunately, the biz has some liens against it from the state labor board. I was so excited about her unsolicited offer that I told her I would owner finance. Problem is, she can only come up with 20% down which is not enough to pay off my liens. It's about 60% of the amount needed to clear all liens. Her offer includes an amount over and above this, if I will finance 80% of the sale for 36 months.

IS there a business contract she and I can get into that would not release the biz to her legally until she's paid in enough to cover my liens (should happen by the end of the year, based on the monthly payment she proposes), while at the same time, getting most of the day to day responsibility off of me. I can't afford to pay her well as a manager and I don't want to lose the deal.
Submitted: 4 years ago.
Category: Business Law
Expert:  MShore Law replied 4 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Yes, you and the buyer can enter into an agreement whereby the buyer has complete control over management of the business, agrees to indemnify you against any claims against the business after the execution of the agreement for purchase, but the business registration is not amended to reflect the change in ownership until the closing on the sale is completed. Please let me know if you need additional guidance.
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