Seller note terms on a stock sale with multi-year contractors

3 year standby is awesome

Thanks for the tag ^Searchfunder member‌. ^Searchfunder member‌, you've got so many great answers here. And my advice echoes the comments of others. 1) Keep it simple--whatever metric you choose, make sure it doesn't lead to disputes later down the road. 2) Tie the metric to the risk--here, it sounds as if you are worried about a loss of revenue, so tying the note to X% of revenue sounds right. 3) Involve a tax professional and your lender (if applicable)--you're getting competing advice on how to structure the note, in part because your exact situation is unknown. Assuming you are relying on SBA financing, you should be able to structure the note such that forgiveness equals a reduction in purchase price rather than the cancellation of debt. But reductions in purchase price can have their own tax implications. So, again, working with a tax professional. Let me know if you want to discuss further. Always happy to help!