Tips To Consider When Selling Your Business
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Friday, January 22, 2016.
Selling your business is a big decision. Several factors should be considered before deciding to sell your company or your stake in the business. Careful planning should be followed regardless of the reasons for selling.
Business owners in Silicon Valley or in the manufacturing or service industry need to be aware of the potential risks of selling their business before it's too late. This is a complex process that can go wrong after a simple mistake. Proper planning can reduce the risk of those mistakes.
What can you do to protect yourself?
Legal complications can arise quickly when trying to sell your business. Your future can be harmed if you fail to properly prepare for the sale. How can you protect yourself and your future? First, you should make sure all options are evaluated before you officially decide to sell the company.
Once you are sure you want to sell, consider the following tips to prepare for the process:
- Have an attorney draft the contract to ensure all liability is transferred to the new owner
- Include deadlines to ensure buyer complies with the terms of the sale
- Include a waiver of rights in case of delay or the deal is cancelled
- Review structure of business to ensure any necessary approvals are obtained before selling the business
Your business goals are important. Failing to plan for the sale of your business can harm you in many ways so it is best to work with an attorney who can help you explore all options and protect your best interests.