Transition services

Definition

The seller's committed training and availability after closing.

Why It Matters

How long the seller stays on and on what terms is negotiated rather than assumed, and verbal goodwill evaporates surprisingly fast once the wire clears. Get the hours, the duration, the compensation, and what specifically is being handed over onto paper, because 'available for questions' means one thing to a buyer learning the business and another to a seller on a boat. Note that a long paid engagement can raise its own problem: staff keep taking direction from the old owner while you are the one carrying the debt.

In numbers: A typical structure: the seller stays 90 days full time at $0 added cost, priced into the deal, then is available by phone for a year; a seller who will only commit to two weeks is telling you something the CIM did not.