Can I ask for more if I offer to train the new owner?
You can raise it, but training is one negotiated term, and nothing makes it add to the price. BDC says price follows a buyer’s perceived value. Ask whether training is paid, unpaid, or tied to an earn-out or an advisory role, and write the answer into the agreement.
Offering to train the new owner is something you can raise in negotiation. Whether it adds to the price, is paid separately or is simply part of the deal is for you and the buyer to agree. This page sets out how training fits into a sale, using BDC’s published guidance, and how to make sure what you promise is written down.
How BDC describes price
BDC says a business’s price is fundamentally determined by its perceived value to a potential buyer, often a blend of financial performance, future growth potential and strategic fit. It lists how easily the business can operate without the current owner among the factors. Training does not change the financial results a buyer sees. Whether it affects what a buyer will pay is a negotiating point, not a rule, so avoid assuming it is worth a set amount.
Where training fits in the sale plan
BDC suggests working out a transition plan with the buyer that includes details of what you will give the new owner to help run the business successfully, such as getting them up to speed on operations, informing them about intellectual property and making introductions to suppliers. It also describes owners who remain involved through an earn-out, a phased transfer of ownership, or a role as an executive, board member or advisor. Each of those is a different way to structure the same handover.
Write it into the agreement
BDC says a purchase agreement includes covenants, which are actions the buyer and vendor agree to take before and after closing. It adds that ancillary agreements can include a transitional services agreement, where the vendor agrees to provide services after closing. Ask your lawyer which of these should carry any training you offer. Settle how long it lasts, how many hours a week you will give, what it covers, whether you are paid, and what happens if the buyer needs more time. An open-ended unpaid promise is the one to avoid. Ask your accountant how any separate payment would be treated for tax, and see when you actually get paid as a seller.
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaIndustryHow to sell your business
- 02Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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