Consulting agreement

A post-close contract that keeps the seller on for a set period as a paid advisor rather than an owner, to transfer customer relationships, know-how, and goodwill to the buyer.

It is how an SMB buyer defuses key-person risk without leaving the seller any ownership: a few months of the seller introducing customers and staff on a fixed fee is often worth more than an indemnity clause, and SBA change-of-ownership rules cap the seller's involvement at twelve months, so the term is written to that ceiling.

In numbers: A $1.2M acquisition often pairs a 12-month consulting agreement near $5,000 a month, keeping the seller reachable through the first full renewal cycle instead of gone at closing.