You only sell your business once. That thought alone may be enough to keep you up at night when you decide it’s time to cash in on your years of hard work — as if there isn’t enough pressure associated with every step of the sale of a business. But there’s much you can do to prepare for the sale, and it’s not a bad idea to start thinking about it long before the day arrives.
If you decide that selling your business is the right exit strategy for you, be sure that you cover all your bases. In order to sell your business officially, you will need to prepare a sales agreement. This is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. It would be a good idea to have an attorney review this document. It is in this agreement that you should define everything that you intend to purchase of the business, assets, customer lists, intellectual property and goodwill.
The following is a checklist of items that should be addressed in the agreement:
• Names of seller, buyer, and business
• Background information
• Assets being sold
• Purchase price and Allocation of Assets
• Covenant Not to Compete
• Any adjustments to be made
• The Terms of the Agreement and payment terms
• List of inventory included in the sale
• Any representation and warranties of the seller and buyer
• Determination as to the access to any business information
• Determination as to the running of the business prior to closing
• Fees, including brokers fees
• Date of closing
At Wynn and Wynn, we provide assistance to clients for the creation and acquisition of a business, providing legal information to successfully operate the business, and following through when the client wishes to close, sell, or transfer a business. Contact us today at 1-800-852-5211 to learn more!