I purchased an accounting practise. The fellow I bought it from is carrying a five year note for a portion of the purchase price. He is struggling financially and would like for me to pay off the entire amount this year. A friend mentioned that in this case I should offer him 60 cents on the dollar. If that standard business practise? I have some ideas of how to come up with the money. I'm trying to figure out how much I should offer him. Thanks for the help.

First, as long as you have been paying according to the provisions of the note, he can only REQUEST that you pay the balance. You have a contract with him to pay over 5 years.

So, if he wants the balance up front, you can negotiate with him a discount. If you want to start with 60 cents on the dollar that's up to you. Whether he accepts it or not or makes a counter offer is up to him.

I know I don't have to pay him off early. I would be more than happy to buy him out but would like some ideas of what to offer.

I suspect that 60% is a low offer, but that is what negotiation is about. You offer low, he counters and then you haggle back and forth until you agree.