Mergers & Acquisitions · Question

Can a buyer require the promoter to stay on after the sale?

Short answer

A buyer can propose it, and many do, but nothing binds you to stay unless you agree to it in the contract. Buyers ask because customers, staff and suppliers often follow the promoter. Whether it applies to you is a negotiation: you can discuss the length, role, pay, and what happens if either side ends it early.

In more detail

When a business depends on the promoter's relationships or judgement, the buyer is really buying a person's continued involvement as well as a company. Asking for a handover period is therefore normal, especially where the promoter holds key customer relations or technical know-how.

How it usually appears

A defined transition period during which you advise and introduce the new owner to customers.
A paid role, as employee or consultant, with defined responsibilities.
A portion of the price that depends on staying, or on performance, paid after closing.
A restriction on competing, discussed in a separate clause.

What to negotiate

Settle the exact scope: your title, who you report to, your authority, and how much time is expected. Agree the remuneration and whether it counts as part of the price. Provide for early exit if the buyer changes the role, and make sure a fixed handover end date is stated, not left open.

Beware payments linked to staying

If a large part of your proceeds depends on remaining in a role the buyer controls, you may be exposed to circumstances you cannot influence. Ask how deferred amounts are protected if the buyer ends your role without cause.

Think honestly about whether you want to work under new ownership. If you do not, say so early; a buyer who needs continuity may price accordingly or choose a different transition approach, such as a longer training period for a successor. Have your lawyer review how these terms interact with any non-compete.

Key points

Buyers may request a continuing role but cannot force it unless you agree in the contract.
Typical forms are a transition period, a paid role or a deferred price tied to staying.
Fix scope, authority, pay, duration and early-exit terms in writing.
Be cautious where significant proceeds depend on a role the buyer controls.

Who this applies to

Founders whose customer relationships are central to the business.
Promoters wanting a clean exit instead of a long handover.
Family owners deciding whether a younger member should take the continuing role.

Last reviewed 3 October 2026

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