Sale of a Business
Starting and selling a business requires a deft decision making process that involves complex steps. When selling a business, the help and expertise of corporate lawyers help investigate tax liability, review contracts and accounts, and ensure disclosure and employee handlings.
Businesses are sold for many different reasons. Thus, the seller and buyer can approach the process in different legal ways. The first thing to do when you decide to sell your business is that you have a Purchase and Sale Agreement with your potential buyer. This agreement provides crucial information regarding the business such as debts, obligations, wages, contracts, and taxes. In addition, this agreement includes full disclosure of liabilities.
Before the sale of a business a thorough investigation should be had. A proper review of tax liabilities, contracts and employee responsibilities is crucial to a successful sale. A buyer wants to be aware of all employees and their titles, wages, and benefits. Sellers must ensure that employees are taken care of at the junction of sale. Tax liabilities that have to deal with business operations must be dealt with by the seller.
Contracts are the most important part of the process. Buyers must be aware of all contracts in place (leases, technology, accounts, etc) before the sale closes.
This simple summary of selling a business is a skeleton look at a very complicated process. The bigger the business — the more involved buyers, sellers and their legal times are. Seeking guidance to make sure every step has been accounted for is key for this process. A lawyer who is fluent in the selling of a business is of the utmost importance.