…
there are several different ways to effect a transaction.
All transactions close in escrow with attorneys acting as
agents. Parties need not be physically present. Funds are
bank-wired.
In the event of a sale (closed
transaction) – you will be required to execute a 36
months Non-Compete agreement not to engage
in a similar web business. Accounts Receivable
portfolio (if any) is negotiable – but most Buyers will
not purchase this asset.
Outright
Cash Sale – The simplest transaction
– but likely the lowest total value to you the Seller.
You agree to sell all the E-Commerce company’s intellectual
property – the web site and all related domain
names – free and clear of any liabilities in
exchange for a negotiated sum of cash payable to a bank of
your choice.
Lease
the E-Commerce Business – for
a 3 – 5 term with a right to renew. The Buyer takes
operating control of the intellectual property – the
web site – but you retain ownership
to the domain names, which are held in escrow during
the term of the agreement. The Buyer is required to provide
monthly - quarterly financial statements. In the event of
a payment default, you immediately re- assume control.
Installment
Sale – in essence, a combination
of the two above approaches - likely to provide you the Seller
with the highest net value. Typically calls for a
balloon payment – or option for one - at the end of
the lease term. |