The short version
- A minimum of about two weeks after closing is common, and buyers often ask for three to four.
- Offer less time and trade extra time for price.
- Pay for transition work at an agreed hourly rate.
- Noncompete terms usually run two to five years in a set radius and are negotiable.
How Long Sellers Stay
Most buyers want at least two weeks after closing, and many ask for three or four. Owner dependent firms need more. Buyers often ask for more than they use, so offer less and trade extra time for price.
Pay for It
Agree what the time costs. A common anchor is annual cash flow divided by about two thousand hours, so a company that earns two hundred thousand dollars suggests about one hundred dollars an hour.
Write down what you will and will not provide, such as customer and vendor introductions, training and system access.
Employees and Timing
Do not announce a sale to staff until close to closing. Early leaks create flight risk. Introduce the new owner to the team after closing, and expect to part ways with one or two people.
Noncompete Terms
Buyers usually ask you not to compete for two to five years within a set radius. These terms are negotiable. Minority partners may need to sign too. Ask your attorney how California limits noncompete promises in a sale of a business.
What to Put in Writing
Agree on hours, duties and pay for the transition period before closing, and who the buyer can call afterward. A vague promise to help leads to disputes.
A short schedule of tasks, such as introductions to top customers and training on systems, keeps both sides happy.
Why Buyers Ask for More
Buyers often ask for more time than they end up using because it feels safer. You can offer a shorter period and add paid time later. That keeps your free time with the company limited and gives the buyer a way to buy more help.
Next Steps
Review the letter of intent terms and the care agency page for an example of an owner dependent business.