• Tue, Jun 04, 2024
  • Key Takeaways: Don't Forget to Address Prepaid Services in Your Business Purchase Agreement
  • Eric_j_gall
  • Click here to link to the full article published in Sharism.org on March 13, 2024, based on an interview with Eric J. Gall.

    Key Takeaways from the Article

    Prepaid services are defined as any income or revenue a business has received where there is an existing liability to perform these services in the future.  Prepaid services include gift cards, deposits, and credits.

    When purchasing a business that accepts prepaid services, it is imperative to address these pre-paid services in the business purchase agreement to avoid conflict after the sale.  It is important for the buyer and seller to work together to make sure each pre-paid service is allocated fairly and equitably. 

    If you have any questions on addressing prepaid services or are interested in selling or buying a business, contact Eric for a confidential, complimentary consultation.

    Eric Gall
    [email protected]