Typically, you pay a broker a commission when you sell your business. However, some agreements ask you to pay the broker a commission even if the sale doesn’t go through. To avoid this, negotiate paying only when the sale is final or ask for a “walkaway fee” to avoid paying a commission on a sale that isn’t going to go through. 

Seller financing (or seller carry) is when a business seller provides the buyer with a loan. It can attract more buyers, increase the sale price, and provide the seller with interest. However, there’s always a risk the buyer could default on the loan, leaving the seller with limited recovery options. 

An LOI is a basic agreement about a potential business deal. It serves as a starting point for negotiations and can help both parties avoid wasting time on deals that won’t materialize. However, there are some aspects of an LOI that are legally binding. A business representation attorney can help you interpret an LOI, deciphering the language to ensure your interests are protected.