Don't forget the Seller Representative Fund when closing your exit.
When selling your business, post-close expenses are inevitable. A holdback fund prevents selling shareholders from writing personal checks months after closing.
• Amount: $100k–$400k (for lower-middle market deals, depending on size & complexity)
• Coverage: final tax returns, legal closure fees, tail insurance, unexpected costs.
• Timeline: Hold for 12 months.
• Setup: Just a plain bank account in the entity's name (which you control/sign for).
Distribute whatever remains back to the shareholders pro-rata.
