Seller Transition Terms

The LOI names a transition period in one line; this is the agreement behind it. The goodwill a departing owner carries is the ceiling on your first year, and a vague “the seller will help” is how it evaporates.

Transition Length (Months)

Hours / Week to Start

Non-Compete (Years)

How the Seller Is Paid

Non-Compete Scope

Knowledge to Transfer

Introductions to the top customersHandoff of key vendor and supplier relationshipsPricing, quoting, and estimating know-howSystems, logins, and undocumented processesIntroductions to key employees and the informal org chartRegulatory, licensing, and inspection contacts

SELLER TRANSITION TERMS

Duration: 6 months after close.
Availability: about 20 hours a week to start, tapering over the period.
Compensation: included in the purchase price.
Non-compete: 5 years.

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