When selling a business, it is crucial to ensure all your legal bases are covered and you receive the maximum value of what it is worth. Having the experience and knowledge of the best contract lawyers and business attorneys in your corner can make the process easier and less stressful. If you are considering selling your business, these are just a few ways an attorney can help safeguard your interests and assist you with the process.
Issues to Consider When Selling Your Business
Before you sell your business, it is important to make sure it is accurately valued. You do not want to short change yourself but overvaluing it can result in minimal interest from potential buyers. There are several business valuation methods that can be used. A skilled business liability lawyer can take a comprehensive look at all aspects of your business and determine what it is worth.
Assets and Debts
When you are getting ready to sell, analyzing your assets and debts and determining how to handle them is a tall order. Estate planning and living trust lawyers often advise small business owners to create a business succession plan as soon as they open their doors. Although there is no way to predict the future, a business succession plan can provide the framework, processes, and procedures for how your business will be sold or transitioned.
Business Purchase Agreement
Another vital element of the sale of a business is a contract that outlines the terms of the sale. Details specific to your industry are important in this contract, so you will want to find an attorney who is well-versed in your line of work. For example, If your business involves the sale of investment properties, it is probably a good idea to have business lawyers experienced in real estate help you draft your purchase agreement. Generally, a business purchase agreement should include:
- A detailed description of the goods, services, real estate, and personal property such as furniture and equipment that is being sold with the company
- The length of time the buyer has to inspect any real property, including product or merchandise
- The manner in which the buyer intends to pay for the business
- The total amount due and the date or time frame in which payment is due
- A clause stating that all parties must agree to and approve of any changes to the agreement in writing
- The state in which the agreement is being executed
- If the business is a corporation, the minutes of the corporation’s authorization of the sale
- Any warranty of the seller, which is intended to protect all parties (optional)
The particulars of your business purchase agreement will depend on your specific circumstances and the type of business you own.
If you need assistance with selling your business or you are interested in learning more about business succession planning, our Pennsylvania real estate lawyers, business attorneys, and estate planning attorneys work collaboratively to help you find practical solutions that meet your specific needs.