Glossary · Doing the deal
Consulting agreement(Consulting contract)
In short
A contract for advisory or professional services provided by an individual or firm. Buyers often negotiate a consulting agreement with the seller post-closing for a transition period.
What it means in a deal
A seller's consulting agreement can ensure a smooth handover, client introductions, and knowledge transfer after the sale. Clearly define the scope, duration, and compensation. This is often separate from an earnout or seller note, focusing purely on transition support.
Related terms
Common questions about Consulting agreement
- Can a seller's post-closing consulting agreement influence the standby status of their seller note?
- Can the seller's post-closing consulting agreement influence the standby status of their seller note?
- Does a seller's post-closing consulting agreement influence their standby note status with the SBA?
- What factors should a lender assess regarding a seller's post-closing consulting agreement in a change of ownership?
- What specific limitations must a lender impose on a seller's post-closing consulting agreement to ensure it does not imply retained control or undue influence?
- How does a lender determine affiliation when a prior owner retains less than 20% equity and a consulting contract?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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