Many sellers take their business off the market after accepting an offer. This is a critical mistake. We recommend keeping your business on the market until a definitive agreement is signed and all contingencies have been removed (unless you have signed a no-shop agreement with the buyer).

Earnest money deposits are common in small-business sales and less common in middle-market transactions. They demonstrate good faith by the buyer to show that they are serious about purchasing your business.

What are the major terms and characteristics of an LOI, and what impact do these have on negotiations?