How can differences between buyer and seller after-tax proceeds from a deal be resolved?

Adjusting the purchase price to reflect tax treatment is a common and effective approach to resolving differences between buyer and seller after-tax proceeds from a deal. This method acknowledges that the tax implications of a transaction can significantly influence the net amounts received by both parties. By agreeing to an adjusted purchase price, both the buyer and the seller can find a middle ground that accounts for the reality of after-tax proceeds, ensuring that both parties feel the transaction is equitable.

This adjustment can encompass various tax considerations, including capital gains taxes for the seller or the potential future tax liabilities for the buyer. Taking these factors into account respects the financial interests of both parties and ultimately helps facilitate a smoother negotiation process.

The other alternatives, while they might be aspects of deal-making, do not directly address the crucial financial impact of tax treatment on the proceeds. Mediation may help facilitate communication or resolve disputes, but it does not inherently change the financial outcome. Completely restructuring the deal might be unnecessary and complicate the transaction further when a simpler adjustment to the purchase price could suffice. Including performance bonuses may incentivize the seller, but it does not directly address the disparities in after-tax proceeds. Therefore, adjusting the purchase price explicitly to account for tax considerations stands out as the most straightforward resolution.