Considering Selling Your Business?
If you are considering selling your business, there are a number of questions you will need to answer and important steps you need to take. Our business lawyers can help you.
Why Sell Your Business?
The most common reasons for small business owners to sell their business is because of age or health issues. Selling a business is also way to liquidate some capital for a major life transition, such as retirement, a move to another city, or a divorce. Maybe you want to sell your business for a fresh start at another venture. Make the decision to sell a careful and well-informed one by understanding the process and the help you will need to go through that process.
What is Your Business Worth?
Before selling your business, you need to know the value of your business on the market. You can look at the asking prices for similar businesses, but you should also consider obtaining a professional valuation, through an accountant or a business broker. Ultimately, the value of your business is determined by the market, and your business will sell if it has been priced properly. A lawyer can assist you with responding to an offer, and helping you to negotiate the best deal with the buyer. You will need to assemble all the required paperwork and financials for a sale. These include such things as historical financial statements, leases, franchise agreements, inventory lists, equipment lists, sales figures, etc.
Is Your Business Ready For Sale?
Are there things which need to be done at your place of business before it is ready for sale? Consider maintenance, repairs, aesthetic appeal and staging. Just as when you sell a home, imagine a stranger walking into your place of business. Maintain the business processes and financial records well up to the sale and during the entire process, and ensure that the employees are informed of the coming transitions. If you are incorporated, make sure your minute book is up to date before selling your business.
Finding a Buyer When Selling Your Business?
Finding the right buyer for your business is essential. Consider accessing professional assistance with the sale of your business by retaining the services of a lawyer, and a business broker. When selling your business, a broker can create a marketing plan to sell your business to the right target market. A lawyer can help you navigate the financial and legal steps in the process of a business sale, and help you negotiate the best deal with the best buyer. The right buyer will be the one who has been qualified, and whose agrees to the terms regarding a down payment and financing for the business purchase. A lawyer will also prepare documents, review the buyer’s offer, and prepare a counter proposal if necessary. Sometimes you only bring in new investors or sell some of your shares. Sometimes you sell the whole business by an asset sale. Our share transfer lawyers can help with this too.
What Else Do You Need To Do?
You will most likely be closing out business bank accounts, and dissolving a corporate entity. There will be insurance and tax implications, and other legal requirements a business lawyer can help you to address once the sale has gone through.
Are YOU Ready To Sell Your Business?
Selling a business may have a psychological and possibly an emotional effect on you, just as selling a home does. This is particularly true if it is a family business, or one which you founded and nurtured from a start-up. Be prepared for a life change.
Find a Calgary Lawyer For Selling a Business
The Lawyers at Kahane Law Office can help when you are selling your business. Call us now so that we can get involved early in the process to help ensure that you start off properly and protected. We can be reached toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary, Alberta), or email us directly here.