When you’ve built up a successful business and want to pass it on to someone else, there are some important factors to consider. The process of selling a business can be relatively complex.
It has to involve many important elements in the handover process that help make the sale satisfactory to both parties and comply with federal, state and local laws and standards.
Reasons for Selling a Business
One of the first things to think about is how to explain the timing of the business sale to a buyer. Investigating this concept helps to effectively sell the business, but it also provides a key context for what comes next: Administrating the nuts and bolts of the sale process. Evaluating the context of the sale will help to clarify the outcomes for partners, and the positions of those partners relative to the sale.
Business Valuation and Selling a Business
This is an element of the sale where sellers often have many questions. How do you value pieces of property utilized by the business? What about the value of a client list?
Skilled business lawyers can assist with this type of analysis, and advise a business owner on what they’re likely to get for their business in a sale. Valuing assets isn’t always straightforward and can require some extensive research, as well as teamwork. Having professional counsel can help business owners work through the process with more confidence, and tackle the tough questions around ownership and valuation.
Collecting Documentation for Selling a Business
Obviously, the business seller will have to have documentation for assets such as real estate property. However, other kinds of documentation may also be necessary. The business owner may need to compile information from tax returns, to show business income or for other reasons.
The business owner should also provide detailed inventories of assets and items along with the business itself. For example, a restaurant business will need to document restaurant equipment. A transport business will need information related to its fleet. All of this helps enhance the sale process and drive a cleaner sale.
Contemplating Profits when Selling a Business
In many cases, the business seller will get a significant lump sum of money after the sale is final. It’s also important to think about tax burdens on this money, and how it might be invested. This financial research can be a major part of a business sale for a seller. Experienced legal counsel can consult on the best ways to handle money after a sale.
If you’re looking at making a major change in your business, contact the experienced business law attorneys at Feaman Law. Call 561-734-5552 and ask a professional business lawyer how to go forward with the sale of a business. Nail down all of the essential details about a business sale, and head off potential legal issues before they arise. Making the extra effort ensures an orderly sale and a positive result for sellers.