Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Installment Sale

Definition

When the purchaser of a business pays the seller over several years, allowing the tax liability on any gain to be spread over the same period of time instead of all in the year of the sale.

See Also

Seller financing.

Tips

The rules for installment sales do not apply if you elect not to use the installment method or if the transaction is one for which the installment method may not apply.

Related Resources

Small Business Acquisition Financing

M&A Seller Financing: A Complete Guide

M&A Seller Financing: Third-Party Loan Servicing

M&A Seller Financing: Handling a Buyer Default

Can I sell my business for all cash?