A departing co-founder generally forfeits unvested equity back to the company, with the specific mechanics and any exceptions governed entirely by their founder agreement's terms.
An asset sale transfers chosen assets and liabilities out of a company; a share sale transfers the company itself, with everything in it. How they compare.
Subtract debt and debt-like items, add cash, adjust working capital to the peg, then take off fees, holdbacks, rollover and seller note. A full worked example.
Prove the recurring revenue, price the company on a multiple of that revenue or of earnings, pass diligence, then hand over code, accounts and customers.
A business sale is structured by dividing the price into cash at closing, deferred, contingent and retained pieces. The mix decides what the seller receives.
Normalise the earnings (SDE or EBITDA), then test three approaches: market multiples, discounted cash flow and assets. One company, three worked numbers.
A business acquisition runs in order: preparation, buyer outreach under an NDA, offers, a letter of intent, due diligence, a purchase agreement, then closing.
An earn-out makes part of a business sale price depend on results after closing. The metric, the formula and the accounting definitions decide what is paid.
The seller lends the buyer part of the price and is repaid with interest under a promissory note. Terms, security, bank subordination, default and tax.
Due diligence is the buyer's check of a private company before signing: what it covers, how it runs, and how each finding changes the price or the terms.
A holdback costs the seller time and exposure on about a tenth of the price; warranty insurance swaps that for a premium and a much smaller held amount.
A convertible note is a loan to a young company that turns into shares at the next priced round, at a discount or under a valuation cap, not repaid in cash.
A SAFE is a contract in which an investor pays a startup now for the right to shares at a later priced round. Its terms, the conversion maths and the limits.
Six ways to pay shareholders after a company sale, compared: who holds the money, when each holder is paid, and who handles documents and tax.
A practical breakdown of how co-founder buyouts are valued, structured, and settled — covering every major pricing method, payment mechanism, and the closing mechanics professionals navigate.
A precise walkthrough of how a convertible note converts at a priced round — from cap and discount math to closing-day disbursement — for founders, attorneys, and deal professionals.
A step-by-step breakdown of how debt buyers close on a loan portfolio purchase, from the settlement statement to final wire distribution across every party.
A practical guide to how deferred consideration payments are structured, what triggers them, how they are calculated, and how settlement professionals manage the mechanics of paying multiple parties.
A detailed breakdown of how distributors pay manufacturers on each order — from payment terms and invoice mechanics to multi-party splits, settlement delays, and how onchain routing changes the timing.
A detailed breakdown of every payment stream in a franchise resale — transfer fees, broker commissions, seller proceeds, deferred structures, and how onchain routing brings instant settlement certainty to closing day.
A practical breakdown of how angel syndicates pool capital, coordinate closing, and send a single investment — and how onchain payment routing gives every party instant, certain settlement.
A detailed guide to joint venture profit distribution mechanics — from simple percentage splits to multi-tier waterfall structures — and how onchain payment routing brings speed and certainty to settlement day.
A precise, practitioner-level walkthrough of how management fees are calculated, drawn, and reconciled against fund proceeds across every stage of a private equity or venture fund's life.
A detailed walkthrough of how milestone-based vendor contracts structure, trigger, and release each staged payment — and how onchain routing eliminates the delay between approval and settlement.
A detailed guide to how year-end profit distributions are calculated, routed, and settled across multiple parties — and why the mechanics of that final payment matter as much as the numbers behind it.
A detailed breakdown of how real estate syndication waterfalls work — from preferred returns and hurdle rates to exit-day settlement — and how onchain payment routing brings speed and certainty to every distribution.
A practical walkthrough of how revenue-share agreements are structured, where traditional payout mechanics break down, and how onchain routing makes simultaneous, final settlement possible.
A detailed walkthrough of how royalty and licensing deals are structured, how payments flow to rights holders over time, and how onchain routing resolves the friction that accumulates at every settlement point.
A step-by-step breakdown of SAFE conversion mechanics at a priced round, from cap and discount math to share issuance, cap table updates, and how closing attorneys coordinate the settlement.
A step-by-step breakdown of how supplier factoring works — from the advance and reserve through to final settlement — and where onchain payment routing makes every payout faster and certain.
A detailed walkthrough of every mechanic that governs the post-closing working-capital true-up — from peg-setting and the estimated closing statement to dispute resolution and final cash movement.
A detailed breakdown of how affiliate and channel-partner payout structures are designed, layered, and settled at scale — and where onchain routing changes the outcome.
A detailed walkthrough of how asset-backed loans are originated, funded, and repaid across every party in the deal — and how onchain routing removes settlement friction without changing who does the work.
A precise walkthrough of the mechanics, documentation, and disbursement steps that govern escrow holdback releases after earn-out verification in M&A and commercial deals.
A case study of an M&A advisor navigating success fee delays, disbursement queues, and the gap between deal close and getting paid.
How the payment settles when buyer and seller are in different countries, what slows it, and how funds move across borders cleanly.
How payout order differs between selling assets as a going concern and a wind-down, and how each party is paid in each case.
A complete guide to how money is split and paid out when a company is sold — who gets what, in what order, and how each party is paid.
How proceeds flow back to investors after an exit, how preferences and pro-rata shares work, and how each investor is paid.
How one partner buys out another, how the payout is valued and structured, and how funds transfer cleanly between them.
How every party in a business sale can be paid in the same instant, and how simultaneous multi-party settlement replaces sequential wires.
How the professionals in an acquisition get their fees paid from the proceeds at closing, and how the payout is coordinated.
How the payout works in an acqui-hire, how founder and team compensation is structured, and how it settles across the parties.
Why banks scrutinize and hold large deal payments, what triggers the review, and how onchain settlement delivers big sums without the freeze.
A forensic dissection of an acquisition payout where the priority waterfall broke, and the mess that follows when money moves out of sequence.
How payment works when acquiring a crypto-native company, how token and treasury considerations affect it, and how it settles.
How seller-financed deals repay over time, how each installment settles, and how the seller secures the ongoing payments.