Buying a business and selling a business involve many negotiations and contracts. A business attorney can aid you in the negotiation process to help you get what you want for the business you are buying. A lawyer can also help you look through your financial business documents to determine what is relevant to the sales transaction.
Selling your privately owned business is not a task to tackle on your own. Setting the right sales price, find a buyer, and structure a deal that gets you out of the business without lingering responsibility for any past actions, can be very difficult. Even if your business is small, you may need help from experts, such as lawyers, accountants, and brokers, who are there to protect your interests.
Some things you can to do when preparing to sell your business are:
- Update financial records – Update and organize the financial records of the business.
- Hire an agent – An agent can help you advertise the fact that your business is for sale and get offers for your business. This individual will also be able to advise you of whether certain offers that come in are worth consideration.
- Value the business – The value of your business can be determined from the financial status, such as profits, of your business and the reputation of your business.
- Speak with a lawyer – An attorney can ensure everything is in order for the sale. The attorney will also help you with any sales contracts.
If you are planning to buy an existing business, having an experienced business lawyer, who does these deals frequently, knows the terms, and can negotiate fairly for you can be very important. Your business lawyer will check out the business you want to buy and then prepare the legal documents to protect you. That way you will receive the right business in the right condition.
During the due diligence investigation, you will find out if this business is really what the seller told you it was. This thorough investigation is done before you buy the business. The business books and records are carefully examined by your lawyer, accountant and you yourself. This includes financial statements, tax returns, customer contracts, supplier relations, employee issues, real estate leases, title to business properties, trademarks and all other aspects of the business that you deem important. If the condition of the business is found to be unsatisfactory, then you do not have to buy it.