What is a post-closing consultation agreement?
A post-closing consultation agreement requires the exiting owner to stay on and work for the business after closing in a consultation capacity for a short period of time in order to ease the transition for the new buyer.
What are some terms included in a post-consultation agreement?
Length of the agreement, how much time commitment is expected of the seller, remuneration (if any), and generally what the seller will show the buyer in terms of the operations and management of the business.
How long is the post-consultation period after the closing of an Agreement of Purchase or Sale?
A post-closing consultation agreement is usually for a short period of time; anywhere from 2 weeks to 6 months depending on the nature of the business and the agreement between the parties.
Is the selling owner paid for his time during the post-closing consultation period?
In some cases, the selling owner is compensated for his or her time acting in a consultation capacity. Other times, there is no additional payment as this was worked into the purchase price of the business.
