The Law Office of Lynnette Ariathurai A Professional Corporation

Legal challenges not uncommon when selling a business

There are any number of reasons why a California business owner may decide to relinquish ownership by selling a company. Often, legal challenges arise during the process of selling a business that may be best addressed through sound and experienced legal counsel. Sellers and buyers often have very different perspectives regarding potential deals, and sellers often want to make certain that the appropriate valuations are assigned to their businesses before allowing ownership to change hands.

There are various factors to consider when attempting to value a business. The most obvious is to add up all company assets to calculate a selling price. Both net and future potential incomes may also be considered when determining how much a business is worth. The bottom line is that business owners want to protect their interests when determining fair selling prices for their companies.

A business owner often obtains a professional valuation before negotiating a sale. As the process unfolds, at some point, a contract must be drafted requiring signatures of both the seller and buyer in order to finalize a sale. It is crucial to clarify all legal terms, obligations and fine print details in a sales contract to avoid possible disputes from arising.

Anyone selling a business in California who wants to discuss the matter with a business and commercial law attorney can do so by contacting a law office in the area to request a consultation. There are many ways in which an experienced attorney can be of service to a business owner during sale negotiations and contract resolutions. Whether assistance is needed to properly value a business, clarify state law or negotiate a contract dispute, a first logical step to take to resolve such issues would be to seek guidance from a local attorney.

Source: bizbuysell.com, "How To Value A Business", Richard Parker, Accessed on April 6, 2016

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