Accounts receivables refer to the amount of money that a business is owed by its customers for products or services that have been delivered but not yet paid for. When selling your business, there are a few things that can happen to your accounts receivables:

  1. Included in the sale: Accounts receivables can be included as part of the sale of your business. This means that the buyer will take over the responsibility of collecting the outstanding payments from your customers. The buyer may also negotiate with you to reduce the purchase price if they believe that some of the accounts receivables are unlikely to be collected.
  2. Sold separately: In some cases, accounts receivables may be sold separately from the business. This can happen if the buyer is not interested in taking over the responsibility of collecting the outstanding payments. The accounts receivables can be sold to a third-party collection agency or factor, who will then assume the responsibility of collecting the payments from your customers.
  3. Collected after the sale: If your accounts receivables are not included in the sale and not sold separately, you will continue to be responsible for collecting the outstanding payments from your customers. In this case, you should make sure to notify your customers of the sale and provide them with information on where to send their payments.

It’s important to note that the treatment of accounts receivables 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 receivables are handled appropriately.