You’ve been thinking about selling your business for a while now. You’re ready to move on and do something different with your life, but you’re not sure where to start or what the process will entail. You may be surprised- the legal aspects of selling a business are very complicated, and you must have the proper knowledge and expertise when navigating this process. That’s why you must consult an experienced business lawyer before making any decisions!
In this article, we’ll explore some of the many reasons why hiring a qualified business lawyer is so essential when you’re trying to sell your business. With their assistance, there should be no surprises during this process!
What to do before you sell your business
1. Decide if you’re ready to sell
Before selling your business, the first thing you need to do is decide if you’re ready to let go. This can be a difficult decision, and it’s important to weigh all of the pros and cons before making a final decision.
2. Get an accurate valuation of your business
To get the best possible price for your business, you need to have a realistic understanding of its worth. A qualified business lawyer and accountant can help you get an accurate valuation so that you’re not leaving money on the table.
3. Find a qualified buyer
When you’re ready to sell your business, it’s essential to take the time to find a qualified buyer. There are many different ways to go about this, but the most important thing is to ensure that you’re working with someone who knows what they’re doing.
A good business broker can be a massive help in finding the right buyer for your company. They have extensive knowledge of the market and will match you with a buyer who is a good fit for your business.
4. Draft a sales agreement
Once you’ve found a qualified buyer and you’ve agreed on a price with the buyer, it’s time to draft a sales agreement. This document will outline the terms of the sale, and it’s important to make sure that everything is spelled out clearly. A business lawyer can help you draft a sales agreement that protects your interests and ensures a smooth transaction.
5. Handle the closing process
The closing process can be tricky, and it’s important to have a qualified lawyer guiding you through it. They’ll ensure that all of the necessary paperwork is filed and that the sale goes through without any hitches.
Once the sale is finalized, it’s time to celebrate! You’ve worked hard to build your business, and you deserve to celebrate your success. Enjoy this time with your friends and family, and be sure to savor all of the memories you’ve made along the way!
The importance of having a business lawyer during the sale process
When it comes time to sell your business, having a qualified business lawyer on your side is essential. They can guide you through the process and make sure everything goes smoothly. Here are just a few of the reasons why you should always have a business lawyer by your side during the sale process:
1. They know the legal process inside out.
2. They can help you negotiate a fair price for your business.
3. They can help you protect your interests during the sale negotiation process.
4. They can help you draft and review all of the legal documents related to the sale.
5. They can help you resolve any disputes that may arise during the sale process.
6. They can provide valuable advice and expertise on tax and financial matters.
7. They can provide valuable advice and expertise on potential business problems that could arise after the sale, such as retaining customers or maintaining relationships with key employees.
8. They can help you to maintain good relationships with customers, suppliers, and employees after the sale.
9. They can protect your assets from potential claims during or after a business sale process.
Having a qualified business lawyer by your side ensures that all necessary legal documentation is signed and filed before the closing date, which will save you time and money in the long run and limit the risk of any disputes arising after the closing date has passed.
How to find a qualified business lawyer
When it comes time to sell your business, you’ll need to have a qualified business lawyer on your side. A good business lawyer will be a seasoned negotiator and will have extensive knowledge of mergers and acquisitions, business and commercial law. If you’re operating in a niche industry, you will also want to ensure that your business lawyer has a thorough understanding of the unique opportunities and challenges facing your industry. Some things you should look for when vetting a potential business lawyer include:
- Does your business lawyer understand the specific industry you operate in (i.e., technology, retail)? The more background knowledge your potential business lawyer has related to your industry and the size of companies within it, the better equipped they will be for helping you out.
- Does your selected business lawyer have experience selling businesses of a similar size and scope to yours?
- How long has the lawyer been practicing?
- What are some of the most recent transactions that your potential-business lawyer worked on?
- Can the business lawyer provide references and/or recommendations from previous clients?
- Is the lawyer familiar with the tax laws? A lawyer with an understanding of tax laws can provide guidance on structuring your sale transaction in a manner that minimizes the taxes that you will pay as a result of the sale.
By asking these questions, you’ll be able to find a lawyer who suits your needs and is qualified to help you sell your business.
What to expect when meeting with a business lawyer
When meeting with a business lawyer, you can expect to discuss the reasons why you are selling your business. It’s important to remember that they are trying to gain as much knowledge about your business as possible. They will ask you questions about the company so that they can assess all of the risks involved in selling it. It’s important to fully disclose any information you have to avoid getting into legal trouble later on down the road.
During your initial meeting, your business lawyer will generally ask for things such as:
1. A copy of the company’s articles of incorporation and bylaws;
2. Current financial statements;
3. A list of all previous owners and shareholders;
4. All documentation concerning changes in company ownership over time, including purchase history and current shareholders; and
5. Any other documents concerning legal issues surrounding your company, such as non-compete agreements or intellectual property agreements.
The business lawyer will also likely discuss with you some of the following things:
1. How long will the entire process take;
2. What are some of the common legal issues that may arise during the sale of a business;
3. How much should you expect to pay for a business lawyer’s services; and
4. What are some things you can do to make sure your business sells quickly and smoothly.
How much a business lawyer will cost you
How much you can expect to pay for a business lawyer’s services will vary depending on the lawyer’s experience and the complexity of your case. At Beganyi Professional Corporation, our aim is to provide, as much as possible, a flat rate fee for the services being requested. Feel free to schedule a consultation with Ladislav to understand what your business sale may cost you in terms of legal fees.
Selling a business can be a complicated process, and it’s important that you have the proper knowledge and expertise when navigating this process. The importance of having a business lawyer during the sale process can’t be overstated.
Beganyi Professional Corporation Law Firm is an experienced business law firm that can help you navigate the legal aspects of selling your business. We have the knowledge and expertise to help you make the right decisions for your unique situation. Contact us today for a free consultation!