Among entrepreneurs and CEOs who don't have much experience buying or selling businesses, there is a common (mistaken) belief that the seller bears no further risk after the sale of his or her company is completed. In most cases, this is simply not true, and this reality tends to catch a lot of selling entrepreneurs by surprise.
As prospective buyers and prospective sellers of businesses, it's really important that you understand the major mechanisms featured in most deals that that shift risk between buyer and seller. Most selling CEOs aren't prepared for such terms, and as a result, friction is often created in the negotiation process. Knowledge of these risk sharing mechanisms can help reduce that friction, and as future buyers of businesses, you can utilize many of these tools to attempt to mitigate your own acquisition risk as much as possible.
You can check out the link to the blog below, which includes an option to listen to the blog post in audio format: