Selling a Business
Starting a business is a serious endeavor. It involves making decisions with lasting outcomes. Selling a business is not much different. When selling a business, the owner must complete a complex process of steps and will greatly benefit from the help of a corporate lawyer. The steps involved include disclosure, investigating tax liability, reviewing contracts and accounts, and ensuring employees are properly managed.
There are many different reasons to sell a business. If approached by a buyer, the seller must have a Purchase and Sale Agreement including the provisions of full disclosure of liabilities. This document includes crucial information about the business such as, taxes, contracts, debts, obligations, and wages.
Additionally, at the time of sale there should be up to date reviews of employee responsibilities, tax liabilities and contracts. This is information that must be disclosed to a possible buyer, and if it isn’t properly disclosed it may complicate the sale. The buyer should have all pertinent information involving employees, including wages, titles, responsibilities and benefits. And, once the sale goes through, the seller is responsible for making sure the employees receive all necessary items, such as bonuses.
When a business is being sold, all tax liabilities must be handled and explored openly. There are many different taxes that may apply during the sale of a business and those that relate to its operation before the sale should be handled by the seller. All contracts must be presented to the buyer for review.
There are so many factors involved in selling a business. Above is a summary of a few of the most vital factors. Each business is different, and will require different handling. If a business is large, the sale may be more complex. It is always best to consult legal council in the sale of a business to ensure all bases are covered.
