Why You Should Hire an Attorney when Selling Your Business
If you’re looking to sell your business or your business assets by the end of the year, it’s time to connect with a business attorney NOW. Contacting an attorney no later than the fall season can ensure that the selling process is completed before the end of the year, giving you peace of mind and a fresh start!
Remember, if you’re selling the business entity, you are selling all the corporation’s shares or, if the business is an LLC, you’re selling all the membership interest. If you’re selling assets, you will remain the entity owner, but you will be selling specific assets, such as equipment, to the buyer individually.
Refer to our blog post titled “What’s the difference between an asset purchase and an entity purchase?” for more information regarding business purchases and business asset purchases.
There are four basic steps to selling your business or your business assets:
1. Determining an accurate valuation for the business. This is crucial and you will need to consider many different factors such as business revenue, asset values, etc. There are valuation guides and calculators to help you reach a proper value amount.
2. Finding a serious buyer. Sometimes this happens organically through word of mouth, other times you can use online listings or even enlist the help of an agent.
3. Term Negotiation. Both parties should have an opportunity to discuss the terms of the sale.
4. Paperwork and Closing. Once both parties are satisfied with the terms, it’s time to draw up the documents and begin the closing process.
Seems simple, right?
Well, not quite. This process has several areas where sellers can unknowingly step into pitfalls. It is wise to hire a seasoned business attorney to guide you through the selling process. Let’s take a look at how a business attorney can assist you:
1. Expertise. Business attorneys assist with these transactions often, so they have the knowledge to make sure that every part of the process is done properly. From correctly structuring the sale, to assisting with negotiation, to ensuring that all paperwork complies with state and local rules, attorneys are a huge asset for you during this transaction.
2. Protection. Attorneys also know how to adequately protect both parties from any major liability issues. Sellers can often make costly mistakes, such as leaving out important contract clauses, if they attempt to sell without any legal expertise. These mistakes could cause potential legal issues to creep up in the future, which is why utilizing an attorney is a good idea – they know how to combat these future issues, affording you proper protection.
3. Peace of Mind. Selling your business can look easy on paper, but once you begin the process, it can quickly become overwhelming. This can lead to overlooking important details, leaving you vulnerable to liability. Knowing that someone with knowledge and experience is guiding you through the process can alleviate stress. Your business attorney represents you and works in your best interests, having them in your corner is the best way to ensure the sale happens smoothly.
This is just a brief overview. It is crucial that you work with an attorney from the beginning of the selling process so that liability is limited, and the best possible terms are negotiated. You can contact Wheeler Legal, PLLC by calling (321) 209-5995 or email firstname.lastname@example.org to schedule a consultation.
Disclaimer: The information contained above is provided for general informational purposes only, and does not constitute legal advice, nor is it intended to create an attorney-client relationship. This firm aims to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this post. Nothing provided herein should be used as a substitute for the advice of competent counsel.