For whatever reason you plan on selling your business, it’s crucial to take the right steps. Among other things, it requires you close the business, create the appropriate sales agreement, and transfer ownership.
Simply because they’ve been involved in the process many times before, an experienced business lawyer can provide an invaluable service. There are so many considerations concerning the sale of a business, it is impossible to keep track of all that needs to be done without understanding the entire process.
The valuation of your business
How much is your business worth? And how much can you expect to sell the business for? These are not easy questions to answer. It’s important to have access to real estate appraisers, business appraisers and other experts who can provide you answers.
Drafting and review of a purchase and sales agreement
While boiler-plated agreements can easily be located on the internet, it’s unlikely such an agreement will cover all of your needs. You don’t know who drafted such an agreement. And such agreements may not comply with New York requirements.
It’s important that a sales agreement contain language that protects your interests. It is also important that the provisions take into consideration timelines so that the sale takes place smoothly and efficiently.
When considering selling a corporation, you need to consider sale of assets and stocks. This means you will need to conduct a thorough inventory of all business belongings. It requires an accurate listing of all liabilities as well.
The transference of ownership
Depending upon your needs, a transference can take place in a number of ways. You may wish to transfer your business outright. On the other hand, a gradual sale may accommodate potential purchasers who may not be able to buy the business outright. This allows for greater flexibility. There is also the option of transference through the use of a lease agreement.
For all of the above considerations, planning is essential when you consider buying or selling a business. Early planning and understanding all of your options can prevent costly mistakes and potential disputes that later could end in litigation.