How Hiring A Lawyer Can Help In Selling A Business
Selling your business is a complex transaction that might include an emotional factor, especially if you have invested years building your enterprise. Whether you’re selling a family-owned business or a small business in Indiana, seeking advice from an Indiana business attorney is crucial. A lawyer will help you decide the broad details of your business sale before you engage in any conversations with a buyer. A real estate attorney near me or a divorce mediation attorney can also provide valuable insights if you’re dealing with business assets in a divorce. Going forward, a real estate lawyer can supply many insights about financing, valuation, and contracts.
- Explain Approaches to Selling and Financing
Sole proprietorships, partnerships, and sometimes limited liability companies (LLCs) and corporations transfer ownership through asset sales. During an asset sale, the seller primarily sells the valuable parts of the business instead of the actual legal business entity. The company assets being transferred can include tangible items, like equipment and inventory, or intangible items, such as trademarks or patents. Separate conveyances will be needed to document and detail each asset being sold.
A stock sale, in contrast, involves the buyer acquiring an ownership stake via the purchase of the seller’s stock. This transaction transfers the legal business entity into new hands. The negotiation of a stock sale could involve a seller selling off certain assets or resolving certain liabilities before the new owner takes possession of the stock. Noblesville lawyers at Webster & Garino LLC can help you evaluate the advantages and disadvantages of an asset sale versus a stock sale. Legal advice can allow you to make informed choices about the division of business property and debt that reflect your overall goals and limit liabilities.
Seller Financing
Seller financing represents a significant issue that a business owner should consider before putting a business on the market. A seller’s willingness to finance all or part of the transaction could attract more buyers and increase the price. However, taking back a note for the business presents certain risks the business owner should consider before agreeing to finance the sale of the business. A new owner who fails at the helm of the company might force the seller to reclaim ownership or lose everything.
Increasing your understanding of the risks may aid you in the decision about whether you should finance the sale or not. Consulting with a family law attorney near me may also be beneficial if you’re selling the business as part of a divorce settlement. For trustee vs beneficiary matters during the process, involving a special needs trust lawyer can also provide peace of mind regarding asset protection.
- Prepare Disclosures about Business Assets and Liabilities
An Indiana lawyer can organize the essential documents necessary to accommodate a potential buyer’s desire to perform due diligence. Legal guidance will help you place a value on your tangible assets and intellectual property with the support of an accountant or business valuation consultant.
As a seller, you will need to supply thorough financial statements, previous tax filings, current inventories, asset lists, and real estate information. Disclosures about leases, existing contractual obligations, outstanding debts, and maintenance records for equipment and buildings will also require preparation. By having your business records up to date and ready for review, you could avoid lengthy delays tracking down paperwork when an interested buyer makes inquiries. Probate lawyers near me can assist if any assets need to be handled within the probate process.
- Prepare Initial Purchase Agreement
After establishing your business valuation and approach to selling, a lawyer can draft the terms for your purchase agreement. This document will strive to protect your interests as much as possible and represent your opening position during negotiations with a buyer. Your prototype purchase agreement will define your priorities and allow you to focus discussions with a buyer on price instead of the entire character of the transaction.
By working with an Indiana lawyer to prepare records necessary for due diligence and drafting a purchase agreement, you can more easily inspire a buyer’s trust and shape the final deal. Carmel lawyers knowledgeable about business law can provide you with a free initial consultation when you are thinking about selling your business. Estate planning lawyers can also provide insight if you need to manage business succession planning.
Call our office at (317) 497-5892 today to schedule your consultation and begin preparing for the sale of your business. Whether you need a probate attorney or assistance with a real estate transaction for your business, we are here to help.
DISCLAIMER/ATTORNEY MESSAGE:
The information contained in this website/webpage, including, but not limited to, written material, recorded material and/or video/visual material is provided for informational purposes only, and should not be construed as legal advice on any matter.
The transmission and receipt of information on or through this website, in whole or in part, or communication with Webster & Garino LLC via the Internet or e-mail through this website does not constitute or create an attorney-client relationship between us and any recipient. You should not send us confidential information in response to this website or webpage. Such responses will not create an attorney-client relationship, and whatever you disclose to us will not be privileged or confidential unless we agree to act as your legal counsel and you have signed an engagement letter with Webster & Garino LLC. The material on this website/webpage may not reflect the most current legal developments. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability with respect to actions taken or not taken based on any and all of the contents of the website/webpage to the fullest extent provided by law. Do not act or refrain from acting based upon this educational information only without seeking your own professional legal counsel.
Get more info on how to decrease child support payments in Indiana