You may be thinking – I’ll NEVER sell my business! Well, trust me, if there is anything working around small businesses has shown us is that if the price is right, you’ll consider selling!
Here at Bounds Law, we have helped numerous small businesses navigate the legal considerations that come with selling their business. Whether you’re looking to retire or move on to a new venture, it’s important to understand the legal implications of selling your baby (aka amall business).
Here are some key legal considerations to keep in mind:
- Get your paperwork in order: Before you can sell your business, you need to make sure all of your legal paperwork and documents are in order. This includes business licenses, permits, contracts, and any other legal documents that are relevant to your business. You’ll want to make sure all of your paperwork is up-to-date and accurate, as any discrepancies could cause problems during the sale process (and cost you more money to pay an attorney to help you decipher ☹)
- Determine your business’s value: One of the first things you’ll need to do when selling your small business is determine a proper value. There are a variety of methods for valuing a business, but most involve looking at factors like revenue, profitability, and assets. If you are in any way unsure, there are so many professionals that can do a business valuation and get an accurate estimate of your business’s value. This is the best option.
- Find a qualified buyer: Finding the right buyer for your business is crucial. You’ll want to make sure the buyer has the financial resources to purchase your business, as well as the skills and experience to run it successfully. You may want to work with a business broker or other professional to help you find a qualified buyer if you don’t already have one.
- Negotiate the terms of the sale: Once you’ve found a buyer, you will want to negotiate the terms of the sale. This includes things like the purchase price, payment terms, and any contingencies (such as a non-compete agreements). This is where a good attorney can come in and help you negotiate the terms of the sale and ensure that your interests are protected.
- Prepare for the legal transfer of ownership: Once you’ve agreed to the terms of the sale, you’ll need to prepare for the legal transfer of ownership. This may involve transferring business licenses and permits, transferring ownership of assets, and updating any contracts or agreements. You’ll want to make sure all of the necessary legal paperwork is completed accurately and on time. This can be complex and it is highly recommended that you hire a professional to make sure your ducks are in a row on this one.
Selling a small business is truly a complex process with certain legal documents that must be in place. With the right legal guidance though, everything can go smooth as butter for your sale. If you’re thinking about selling, we truly recommend consulting with an experienced business attorney who can guide you through the process and help you achieve a successful sale. At Bounds Law, we have the experience you need to navigate the legal considerations of selling your small business. Contact us HERE to schedule a consultation.
