Selling a business can be an extraordinarily complex endeavor. A potential sale raises many issues you might not immediately consider as you embark on the sales process. Getting legal advice during the sales process can ensure that you fully protect your interests and address all issues that your sale might raise. You can rely on a Florida business transaction attorney at Kramer Green to analyze your situation, point out any potential issues, and assist you in efficiently and effectively resolving the matter.
Factors to Consider When Selling a Business
As you embark upon the process of selling your business, you should take various factors into account. Some of these considerations are directly related to the sales process, but others concern you more personally. As a result, you should think about each of these factors as you work on selling your business.
First, consider to what extent you plan to continue to be involved in the business, if at all, and if so, how you will ultimately exit that role. Various options exist in this regard. For example, you may be ready to retire and leave the business behind altogether. However, you also may be willing to provide a transitional period for the new owner to help retain customers and ease the change in ownership for everyone involved. You also must consider how you will support yourself following your departure from the business, whether you will continue working in the industry in some fashion, and if so, whether nondisclosure and non-compete agreements may be a necessary part of the transaction.
Next, you’ll want to evaluate the type of person or entity purchasing your business or whether that is a factor that matters to you. For example, suppose you are adamant about the new owner maintaining your legacy as a business owner and keeping your business intact. In that case, you may be very selective about who purchases the business. On the other hand, if you are looking to exit the industry altogether and wish to take the best purchase price, you may not care who purchases the business.
You should also consider whether it is the right time to sell your business. People sell businesses for many reasons, including the following:
- They are ready to retire;
- They have outgrown or grown tired of the business and wish to make a lifestyle change;
- The industry has declined, or other market forces have caused it to become obsolete;
- They have a new business opportunity that has arisen, such as a partnership; or
- They are interested in another type of business and need the funds to purchase and/or build that business.
Current market conditions may also affect the best time for selling a business. For example, if the market is depressed, you may not get what you want from the business. In other words, it may be worth waiting a few more years until the market rebounds and you can recoup your investment in the business by selling it.
Finally, you must understand your legal and ethical obligations when selling a business. For example, suppose you have a partner or co-owner in your business. In that case, you must comply with any partnership agreement or other entity agreement by giving proper notice to and treating that party fairly and appropriately through the sales process.
You do have an obligation to be forthcoming and honest in representing your business to the seller. You could be held liable if you materially misrepresent facts about your business that the purchaser relies on in purchasing the business or paying a certain purchase price.
Allow Us to Help You Protect Your Legal Interests Today
A business transaction attorney at Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A. is ready to help you protect your legal interests while selling your business. We understand how diligently you have worked to build your business, and our goal is to assist you in transferring it to the new owners as smoothly and efficiently as possible while safeguarding your interests throughout the process. Contact our office today at (954) 966-2112 or reach out to us online to schedule a time to discuss the sale of your business with our attorneys.