Selling the Business

When the business is being sold, make sure that all t’s are crossed and i’s dotted. The first step is preparing a Sales Agreement, the core document for selling business assets and/or company stock. Your job is to make sure the Sales Agreement is accurate. Also, make sure that  it addresses all purchase terms and components, including:
  • Seller, buyer and business names
  • Background information
  • Purchase price, assets being sold (including a complete list of inventory), and how those assets will be allocated
  • Non-compete covenant
  • Terms of Agreement and payment terms
  • Seller and buyer representation and warranties
  • Access to business information
  • Date of closing, and how the business will be run in advance of that date
  • Contingencies
  • Fees (including broker fees)

Game Plan

Prepare the Sales Agreement. Then be sure to forward it to the company’s attorney for an intense review. An even better idea: Enlist that attorney’s assistance in drafting the document.
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