All templates / Business Formation & Structuring
Selling (or investing in) a business
guideWalks through the major decision points when a business is being sold or receiving investment: selling assets vs. selling equity, a complete sale vs. a partial stake, and paid-upfront vs. deferred/earn-out vs. convertible-debt vs. royalty payment structures. Each path links to the matching template below.
Good fit for
- +Deciding between an asset sale and an equity (stock/membership interest) sale — they have very different legal and tax consequences
- +Structuring a partial-stake investment deal (e.g. "$100,000 for 10% ownership") the way it would actually get papered up
- +Understanding alternatives to straight equity: a convertible note, a royalty, or an earn-out tied to future performance
Not ideal for
- −Assuming asset sales and equity sales are interchangeable — which one is better often depends heavily on tax treatment and liability exposure, and needs real accounting/legal advice for a specific deal
- −Skipping professional deal advice for a significant transaction — these templates structure a deal you've already negotiated, they don't replace a lawyer or accountant reviewing it
This guide includes
This document was generated from a template and is provided for informational purposes only. It is not legal advice. Consult a licensed attorney in your jurisdiction before relying on it.