You Agreed on a Price. The Hard Part Starts Now.
What makes a business purchase or sale so complicated?

Every few months, a business owner calls our office with some version of the same sentence: "We already worked everything out. We just need you to paper it."
What they have usually worked out is the price. Sometimes a closing month. Occasionally a handshake on who keeps the delivery van. What they have not worked out is everything that actually determines whether the deal closes, whether the buyer gets what they think they are buying, and whether the seller ever sees the full purchase price.
Price is one term. A small business sale has dozens. Here are the ones that routinely turn "we already agreed" into six weeks of negotiation.
What exactly is being sold?
The single biggest structural decision in any small business deal is whether it is an asset sale or a stock (or membership interest) sale. The price can be identical in both. The consequences are not.
In an asset sale, the buyer purchases specific assets: equipment, inventory, customer lists, the business name, maybe the lease. The seller's corporate entity stays behind, along with most of its liabilities. Buyers usually prefer this. In a stock sale, the buyer purchases the entity itself, including every liability it has ever incurred, known or unknown. Sellers usually prefer this, partly for tax reasons.
The two structures produce different tax bills, different liability exposure, different treatment of contracts and licenses, and different closing mechanics. Agreeing on $600,000 without agreeing on structure is agreeing on very little.
Is the price actually the price?
A stated purchase price rarely arrives as one wire at closing. Deals under $5 million commonly include some combination of:
- A deposit, and rules for when the buyer forfeits it
- Seller financing, where the seller takes back a promissory note for part of the price and gets paid over years
- An earnout, where part of the price depends on how the business performs after closing
- A working capital or inventory adjustment that moves the number up or down at closing
Each of these is a negotiation of its own. If the seller is financing 30 percent of the price, the seller is not just a seller. The seller is now a lender, and needs security, personal guarantees, and default remedies, because the buyer's ability to pay depends on running the business well.
What happens to the lease?
For many Main Street businesses, the location is the business. The lease almost never transfers automatically. Most commercial leases require landlord consent to assignment, and landlords use that consent moment as leverage: higher rent, a fresh personal guarantee from the buyer, sometimes a fee just for saying yes.
We have seen deals where price, terms, and documents were fully agreed and the transaction still nearly died because the landlord would not release the seller's personal guarantee. The seller was days from closing when he learned he would remain personally liable for a lease on a business he no longer owned. That is not a papering problem. That is a deal term nobody thought to negotiate.
What did the seller promise about the business?
Every purchase agreement contains representations and warranties: the seller's statements about the financials, tax compliance, litigation, employees, and the condition of what is being sold. These allocate risk. If the books turn out to be wrong, the reps and warranties determine whether that is the buyer's problem or the seller's.
Sellers want minimal reps qualified by knowledge. Buyers want broad reps with real money behind them, often held in escrow or offset against the seller note. This is frequently the most heavily negotiated section of the agreement, and it does not exist at all in the handshake deal.
Can the seller open up across the street?
Buyers assume the seller will not take the customer list and start over a mile away. That assumption is only enforceable if the agreement contains a properly drafted restrictive covenant. New York courts enforce non-competes in the sale-of-business context more readily than in employment, but only when they are reasonable in scope, geography, and duration. An overbroad covenant risks being cut back or thrown out. No covenant means no protection.
The same goes for the seller's continued involvement. Is the seller staying for a transition period? Paid or unpaid? For how long, doing what? "He'll stick around to introduce me to customers" is not a term. It is a hope.
The quiet deal-killers
Beyond the headline terms, small business sales routinely hit issues that neither side saw coming:
- Sales tax. In New York, a buyer in an asset sale can inherit the seller's unpaid sales tax liability unless the parties comply with the bulk sale notification rules. Skipping this step can cost a buyer real money years later.
- Licenses and permits. Liquor licenses, health permits, and professional licenses often cannot be transferred and must be reapplied for, which affects timing and sometimes structure.
- Third-party contracts. Key supplier or customer contracts may terminate on a change of control unless consent is obtained.
- Employees. Are they staying? Is accrued vacation the buyer's obligation or the seller's? Does anyone have a claim that walks in the door with the business?
Why this matters for both sides
None of this means small deals should feel like Wall Street M&A. Most of these issues resolve quickly once someone raises them. The danger is not complexity itself. The danger is discovering the complexity after money has moved or after the parties have anchored so hard on "we already agreed" that every new term feels like a betrayal.
The best time to involve counsel is before the letter of intent, when the structure is still open and the terms beyond price can be negotiated calmly. The most expensive time is after closing, when the surprise has already happened and the only remaining question is who pays for it.
If you are buying or selling a business and the price is the only thing on paper, the deal is not done. It has barely started.
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