When business owners talk about selling, price usually dominates the conversation.
While price matters, it rarely tells the full story. Deal structure — the way value is delivered over time and how risk is allocated — often has a greater impact on what sellers actually receive and how confident they feel about the outcome.
Understanding the difference between price and terms is essential to evaluating offers realistically.
Headline Price Is Only One Part of Value
Two offers can look identical on paper and produce very different outcomes in practice.
That’s because buyers evaluate:
- How much cash is paid at closing
- How much value is deferred
- What conditions must be met to receive the remainder
A higher headline price with uncertain terms can be less attractive than a lower price with greater certainty.
This distinction is often overlooked early — and regretted later.
Earn-Outs Shift Risk Back to the Seller
Earn-outs are common, especially when buyers perceive uncertainty.
They tie part of the purchase price to future performance, which can:
- Align incentives
- Bridge valuation gaps
They can also:
- Extend seller involvement
- Create disputes over control or measurement
- Delay or reduce realized proceeds
Earn-outs aren’t inherently bad, but they materially change the risk profile of a deal. Sellers should understand exactly what they’re agreeing to and how much of the outcome remains outside their control.
👉 Check out: How Preparation Impacts Business Valuation
Seller Notes and Deferred Payments Affect Liquidity
Seller financing is another common structural element.
While it can:
- Increase buyer pool
- Support higher headline pricing
It also:
- Defers liquidity
- Introduces credit risk
- Extends the seller’s exposure post-closing
For some owners, this tradeoff makes sense. For others, immediate liquidity is a higher priority. The right answer depends on individual goals, not just price.
Working Capital and Escrows Are Often Underestimated
Even all-cash deals can include adjustments that affect net proceeds.
Common examples include:
- Working capital targets
- Holdbacks
- Escrows for indemnification
These mechanisms protect buyers, but they also influence how much value sellers receive at closing and how long funds remain at risk.
Understanding these mechanics early prevents surprises late in the process.
👉 Check out: What Actually Happens When You Sell a Business
Buyers Use Structure to Manage Risk
From a buyer’s perspective, structure is a tool.
According to BizBuySell Insight Reports, buyers increasingly rely on deal terms — not just price — to manage uncertainty, especially in competitive or shifting markets.
This doesn’t mean buyers are trying to disadvantage sellers. It means risk is being priced explicitly rather than implicitly.
Strong Preparation Improves Structural Outcomes
Well-prepared sellers often negotiate cleaner structures.
Clear financials, documented processes, and credible forecasts reduce the buyer’s need to rely on earn-outs, notes, or contingent payments. In many cases, preparation improves certainty even if headline price remains unchanged.
👉 Check out: What Actually Drives Business Value
Conclusion
Price is what gets attention. Terms determine outcomes.
Owners who evaluate offers holistically — considering certainty, timing, and risk — are better positioned to choose the deal that aligns with their goals. Understanding deal structure isn’t about being pessimistic; it’s about being informed.
When selling a business, the right deal isn’t always the highest number. It’s the one that delivers value in a way you’re comfortable standing behind.
