Seller or creative financing involves the seller providing financial assistance to the buyer to facilitate the purchase of the business. This could involve structured payments over time, taking on debt, or employing other financial instruments like annuities to manage the sale.

When a business is sold via an annuity, the seller receives a series of fixed payments over a specified period from the buyer instead of a lump sum at the sale time. The seller essentially finances the sale and could potentially benefit from a steady income stream, while the buyer doesn’t have to come up with the total purchase price upfront.

Creative financing can facilitate a sale when traditional financing is challenging, potentially enable the seller to secure a higher selling price, provide a steady income stream post-sale, and might offer certain tax advantages by spreading out the income over a period.

Risks may include the buyer defaulting on payments, the business failing under new ownership (impacting the ability to pay), or market conditions affecting the business’s profitability, hence affecting the agreed-upon annuity.

Ensure a thorough vetting process for buyers, create a legally binding purchase agreement, secure collateral where possible, and work with legal and financial advisors to mitigate risks and structure the deal in a secure manner.

This largely depends on the agreement struck between you and the buyer. Some sellers retain a certain level of involvement or oversight to safeguard their financial interest, while others prefer a clean break.

Seller financing can spread out your tax liability over the payment period, potentially keeping you in a lower tax bracket compared to receiving a lump sum. A tax advisor can provide a detailed understanding tailored to your circumstances.

The course of action should be stipulated in the sale agreement and might involve reclaiming ownership of the business, seizing collateral, or pursuing legal action to recover owed amounts.

The structure and terms of the payments should be negotiated and can be influenced by factors such as the buyer’s capability, your need for income, and the assessed risk of the deal. Legal and financial advice is vital in forming a secure structure.

Common Exits strategies include:

• Selling the Business
• Family Succession
• Management Buyout
• Employee Stock Ownership Plan (ESOP)
• Liquidation

Business valuation can be complex and typically involves considering factors like financial performance, assets, market conditions, and sometimes intangible assets like brand reputation. Employing a professional business valuator or a brokerage firm is often recommended to ascertain an accurate and fair business value.

It’s usually wise to start planning your exit strategy several years before you plan to retire, to ensure a smooth transition and to maximize the value you get from the business. Early planning also facilitates handling unforeseen circumstances like health issues effectively.

Establishing a solid transition plan, training a successor, and documenting processes and client relationships can ensure continuity. It's crucial to communicate the transition to employees, suppliers, and clients to maintain confidence and stability in the business.

The tax implications can be significant and depend on the structure of the deal, the type of business entity, and jurisdiction. Engage a tax specialist to optimize the structure of the sale to minimize tax liability while complying with tax laws.

Demonstrating consistent profitability, having a stable customer base, showing growth potential, and ensuring operational systems are robust and reliable will make your business appealing. Ensure that financial records are accurate and transparent.

It’s imperative to have a well-thought-out investment plan for your retirement funds. Working with a financial planner to strategize investments, manage risks, and ensure a steady income stream in retirement is often beneficial. Selling a business via an annuity is an option for receiving payments over a period of time.

Selling to a reliable buyer ensures that your legacy and the business you've built will continue to thrive. It also safeguards jobs, customer relationships, and potentially your own financial future if any payments are deferred or tied to future business performance.

A stable transition to a reliable buyer often results in preserved employment, maintained company culture, and sustained relationships within the business, contributing to continued operational success.