No matter how much pride of ownership you have for your business, there might come a day when it’s time to hand the reigns over to a new owner. Whether or not this possibility is currently in your sights, it is important to have secure plans in place to make sure the transaction is as painless—and profitable—as possible. Getting a lawyer involved from the day you decide to step aside can give you the peace of mind needed to provide a secure path for the future.
An attorney is an integral part of your preparation team. You need a professional that has experience in reviewing existing contracts that contain rights and obligations of shareholders, loan agencies, suppliers, employees and other partnerships within your business. Experienced business lawyers will be able to develop checklists and contracts to cover the issues that are common to selling a business so that you won’t have surprises at the time of the sale. They should also be able to provide advice regarding the pros and cons of stock sales versus asset sales, along with any representations that the seller is making and any warranties that will be expected by buyers.
Preparation is the key to successfully selling a business, and partnering with an attorney is a vital part of the due-diligence process. By drawing up prototype asset or stock purchase agreements before the sale, the seller can be sure that all exhibits for potential buyers are in place before starting the process. This allows sale negotiations to focus on price and financing without roadblocks created because the seller can’t provide critical information to the buyer. It also increased the buyer’s trust, which can be a critical component in making the sale.
Of course, it’s best to work with attorneys who have experience in the selling of businesses, like the team at LexLaunch.com. We are ready to help you reduce your risks and protect your assets. If you are considering selling your business, either now or in the future, call the experts at LexLaunch.com today at (816) 434-6610 or click here for more information.