Selling Your Business? Why You Should Consult With a Lawyer
Not only is selling a business is a big decision, it is also a highly complex transaction. Indeed, a person who is buying or selling a business should move forward in the process only by first seeking guidance from an experienced business law attorney as well as an accountant. Here, we explain how a lawyer will help you during the business sales process.
Three Ways Your Lawyer Will Help You Sell Your Business
- Compiling Information and Preparing Documents
As all business owners know, running a company is not easy. To be successful business managers must pay attention to a tremendous amount of small details. Likewise, selling or transferring a company is a highly complex and details-oriented process. In order to ensure that the sale of a business is conducted properly, it is vitally important that all relevant information is disclosed and all documents are carefully prepared. You need a business law attorney by your side who can help you make sure that you have dotted your ‘i’s’ and crossed your ‘t’s’. A non-exhaustive list of issues that must be addressed during the sales process include:
- Valuation of assets;
- Valuation of liabilities;;
- Dealing with outstanding contract rights;
- Employee benefits;
- Disclosing financial records;
- Conducting real estate surveys;
- Gathering maintenance records; and
- Complying with tax rules.
- Mitigating Risk and Avoiding Mistakes
Selling a business comes with some inherent risks. Unfortunately, risks are always a part of business life. That being said, with proper legal guidance, you can avoid many common mistakes and dramatically reduce the risk involved with the transaction. If you fail to take appropriate precautions, you may end up dealing with litigation. This is undesirable for every party involved. Beyond being costly and time-consuming, litigation related to the sale of a company can also cause major damage to the value of the underlying business.
- Execute the Transaction
Finally, the transaction for the sale of your business must be properly executed. This can be far more complicated than it might initially seem. Business sellers will need to address many different issues when executing a sale. For example, if you are selling your company, you will need to decide if you want to structure the sale as a stock transfer or as an asset sale. Ultimately, the option that will be best for your situation will always depend on your individual circumstances. The best way to protect yourself is to have a lawyer working with you throughout the transaction. Your lawyer will help you clarify your interest, assess your options and execute your desired transaction in accordance with Florida law.
Contact Our Office Today
At Pike & Lustig, LLP, our experienced legal team has helped many business owners sell or transfer their company. If you have any questions or concerns about selling your business, please get in touch with our office today by calling us at 561-291-8298. We offer initial legal consultations free of charge and we proudly serve business owners throughout South Florida.