How do I negotiate training and transition support from the seller?
Raise training and transition support in your offer, not after it is accepted. Define what the seller will teach, for how long and how many hours, who covers extra time, and which introductions they will make, then have all of it written into the purchase agreement.
The seller holds knowledge that is not in any financial statement: how the best customers like to be treated, which supplier can be leaned on, why a certain process works. Handing that over takes time and willingness. If you want it, ask for it clearly while the terms are still open, and describe it precisely enough that both sides know what they agreed to.
Ask early, in the offer
Once an offer is accepted, your leverage on this point shrinks. Include training in the first written proposal, as part of the overall package. A seller who plans to leave soon may need to hear the request while they are still deciding about the rest of the terms. The seller’s view is explained in their role during the transition.
Define scope, hours and length
Vague wording like “reasonable assistance” invites disagreement. Say which areas the seller will cover, such as operations, customer relationships, suppliers and systems. State the length of the period and a rough weekly commitment. Decide whether the seller is paid for extra time beyond that, and who decides when more is needed. These details are easier to settle before closing than after.
Cover introductions
Ask the seller to introduce you in person or by a joint message to key customers, suppliers and staff. Agree on timing, because early introductions carry more weight. If the seller is receiving extra value for training, as discussed in asking for more when offering to train, the two sides should see eye to eye on what it includes.
Put it in the agreement
A promise made in conversation is hard to enforce. Have your lawyer write the support terms into the purchase agreement, and ask what happens if the seller becomes unavailable.
Related reading
15 pages on the same subject, grouped by topic.
Legal
Buying
- GuideMaking an offer on a business
- Expert answerWhat happens after my offer is accepted?
- Expert answerWhat is a conditional offer on a business?
- ChecklistLetter of intent preparation checklist
- Expert answerWhat are the stages of buying a business?
- Expert answerWhat does a seller offering financing tell me?
- Expert answerHow do I find a dog kennel or boarding business for sale?
- Expert answerHow do I check what a dog walking business really earns?
- Expert answerShould I buy a dog walking business or start one?
- Expert answerWhat do you get when you buy a pet sitting business?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.