A legal guide to selling your business
Advice on selling your business from qualified and experienced business law attorneys: Selling your business might be the ideal exit strategy for you, but there are various requirements and legal obligations that you must meet before the sale can be successfully processed. Ensuring that all of your bases are covered should be your very first step. You can do this by preparing a sales agreement. The sales agreement is essential to the purchaser as it contains all of the terms of the purchase including a list of stocks and assets being handed over. It is important that you have your dedicated business attorneys read the document over or handle its preparation on your behalf.
A typical business sales agreement should address / include the following:
- Name of the business as well as the full details of the seller and buyer.
- Background information on all parties.
- List of assets and inventory included in the sale.
- The sale cost expected from the purchaser and terms of the payment (how the amount will be paid over to you).
- Non-compete agreement to protect the interests of the purchaser.
- Representation and warranties of both buyer and seller.
- List of all fees involved, including that of broker’s commissions.
- Date that the business will officially close or change ownership.
Below are a few tips on selling your business:
- Set a reasonable price in place – be realistic or you will frighten potential buyers away with the cost.
- Keep tax deductions in mind. Many people are surprised to find a large chunk of their earnings must go to tax. How your business is set up legally (is it a CC, LLC or similar?) and whether you sell it inclusive of assets or not, will affect the tax amount due. Chat with a CPA to find out just how much you will lose to tax, before you look for a buyer.
- Ensure that you have your legal documentation in order for the sale. You need to be prepared if you find a suitable buyer. Ensure that you have a sales agreement already roughly drawn up by your small business attorney.
Get legal advice for selling your business from Fairfax County business attorneys, Schleifman Law
If you would like to sell your business, there are steps to be followed to ensure that everything is handled legally. At Schleifman Law we are experienced in business law and have prepared many buy/sell agreements and negotiated, drafted and counseled on a multitude of sales and purchase agreements. We have experience in working with large multi-national companies as well as small businesses.
For more information and legal advice on selling your Fairfax County business, contact us via email or telephone at Schleifman Law today.