Accounts payables refer to the amount of money that a business owes to its vendors, suppliers, and other creditors for products or services that have been received but not yet paid for. When selling your business, there are a few things that can happen to your accounts payables:
- Included in the sale: Accounts payables can be included as part of the sale of your business. This means that the buyer will take over the responsibility of paying the outstanding debts to your vendors, suppliers, and other creditors.
- Paid off before the sale: In some cases, accounts payables may be paid off before the sale of the business. This can happen if the buyer requires that all outstanding debts be paid before the sale is completed.
- Handled separately: Accounts payables can also be handled separately from the sale of the business. In this case, you will continue to be responsible for paying the outstanding debts to your vendors, suppliers, and other creditors.
It’s important to note that the treatment of accounts payables will depend on the terms of the sale agreement and any negotiations between the buyer and seller. Work with a business broker or consultant who has experience in selling businesses to help you navigate this process and ensure that your accounts payables are handled appropriately.