You’ve decided to sell you business. Get the full value you deserve.
SELLING A BUSINESS
When a decision is made to sell a business, there are often a number of considerations that must be made. One of the issues that will have to be dealt with nearly immediately is how the business is currently structured. Oftentimes, business structures will dictate how the sale must be handled and if it requires any approvals outside of the owners.
BUSINESS AND ASSET VALUATIONS
When a buyer makes a decision to purchase a business, there are a number of factors that they will review before determining what the business is worth. Some of the items that must be taken into consideration include:
Value of real estate
Existing contracts with clients
Existing loans, equipment leases and product inventory
Existing employment agreements, as well as employee benefit plans
Intellectual property rights
Comprehensive environmental risk determination
DOCUMENTS THAT SHOULD BE PREPARED BEFORE HAND
As an experienced business sales attorney, we can help identify the talent necessary to help sellers meet all the necessary requirements of buyers. In addition, we have developed a comprehensive checklist as well as various contracts which cover many of the issues that are unique to the sale of a business.
One of the key factors to success in a business sale is thorough preparation. Business owners need an advocate on their side to assist them through the entire process of selling a business, beginning with due diligence and only ending at closing.
DOCUMENTATION MOST BUYERS DEMAND
At Solomon Richman, P.C. our experience shows us that prior to a sale going forward, buyers are typically going to look for very specific documents. Some of these include:
Financial documents – three years of profit and loss statements as well as balance sheets. Additionally, most buyers will wish to have year-to-date P&L’s as well as balance sheets.
Tax documents – in nearly all cases, buyers and/or their attorneys will wish to review the last three years of completed and filed tax returns.
Assets on hand – a current list of inventory as well as the current lease on the business property or, when applicable, an appraisal for the property.
Other assets – the seller should also be prepared to provide evidence of assets such as patents, intellectual property rights as well as current bank statements.
Preparing to sell a business is never easy, but being as prepared as possible can make the process far less stressful. It is also important to keep in mind that as a business owner, you may not have an accurate idea of what your business is worth. This could create issues in negotiating with buyers unless the proper valuations are completed prior to putting the business up for sale.
Chances are, you have put years of hard work and many hours into building your business. When it is time to make a sale, you need someone who will help protect your interests as a seller, and ensure that the negotiation process goes as smoothly as possible. If you are considering selling your existing business, call Solomon Richman, P.C. at (516)437-6443 and schedule a consultation with one of our business sales attorneys.