Selling Your Business

Whether you’re ready to retire, a personal issue has forced you to sell, or an individual or corporation wants to purchase your company, selling a business should never be a spur-of-the-moment decision. At King Law Firm Attorneys at Law, Inc., we ensure that when you are ready to sell your business, you’re doing so for the right reasons and that all necessary paperwork is prepared and filed correctly.

Questions To Ask When Choosing To Sell

To determine fair market value and guarantee the purchase is a good investment, buyers will want to look at all of your records. Being prepared to prove your company is financially stable will earn a higher market value and help give buyers more confidence in the investment.
Better market conditions will usually add to the fair market value of the company. If the conditions for selling your business aren’t at peak levels, you may want to reconsider and wait to sell until the markets improve.
Selling your business changes your life. Make sure you’re aware of how your life will be altered when you no longer have a business.
Buyers look to purchase businesses that don’t rely heavily on the owner, so if you are entangled too deeply with the day-to-day operations of the company and don’t wish to stay to help in the new owner transition, you may want to reconsider your role before trying to sell.
Ask yourself what you are willing to negotiate and what aspects of the business or sale are off limits before putting the business up for sale — and always stick to your guns.
Always look carefully at your current situation because there may be other ways to handle certain things without the need to sell the business outright.
Taxes are a major issue when dealing with potential buyers who won’t want to inherit major tax issues along with the business.

Closing The Sale

The sale agreement is the most important document when closing the sale. It ensures the accuracy of all the terms agreed upon and guarantees that the sale is in the best interest of both parties. King Law Firm Attorneys at Law, Inc. can negotiate and draft this document, helping to create a strong deal that benefits both parties equally, but ensures the client isn’t being taken advantage of.

When drafting the sale agreement, the following should be addressed:

  • Names of the seller, the buyer, and the business
  • Background information
  • Assets being sold
  • Purchase price and allocation of assets
  • A Covenant of non-compete
  • Any adjustments to be made
  • The terms of the agreement and payment terms
  • List of inventory included in the sale
  • Any representation and warranties of the seller and buyer
  • Determination as to the access to any business information
  • Determination as to the running of the business prior to closing
  • Contingencies
  • Fees, including brokers fees
  • Date of closing

It’s always good to make a checklist of all paperwork that both you, as the seller, and the buyer will need to close the sale, as well as any tax documentation that will need to be filed.

If you’re ready to sell your business, contact us. We’re more than ready to help.

We offer plenty of information and resources to help you manage your business successfully, including:

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