Anyone have experience with a business sale that has a Holdback that depends on the management staying for a period of time, but, not reporting the holdback as compensation? There are a number of factors in favor of reporting it as purchase price, but, I'm searching for some reliable sources.
Factors are:
Management is getting paid substantial compensation separate from the holdback
The holdback will be paid proportionately to all shareholders including non-management
The amount in question is included in the sale price of assets in the purchase agreement, which is a reasonable value
Any leads appreciated,
Thanks!
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Melita Love
Melita Love CPA
Dobbs Ferry NY
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