So, the time has come for you to sell your beloved business. Perhaps you are just getting too old to manage the company and you are ready to retire. Maybe this was your end-game all along and it is time to cash in. Whatever the case may be, it is easy to get excited when you find a buyer who is ready to pay you for the company you’ve worked so hard to build.
But, as they say, don’t jump the gun. If you rush in too quickly, you leave the potential for serious pitfalls and obstacles that could prevent the sale from happening, leaving you bitter and frustrated after having gotten your hopes up. Just because you’ve found a buyer does not mean you’re in the home stretch. One of the biggest obstructions regarding the sale of your business is the possibility of misunderstandings about the nature of the sale.
Once you’ve found a buyer, the next step will be to define the terms of your transaction. It is here that a miscommunication or misunderstandings can really cause trouble. What exactly are your intentions in selling your business? Are you selling the rights to every aspect of your business? Or do you simply want to sell off your assets but keep certain aspects such as the name?
An entire sale can turn on something as simple as the rights to your company’s name. Your buyer may be under the impression that he or she is going to be buying the rights to all aspects of your business, while there are certain things you don’t feel comfortable giving up, whether due to an emotional attachment or because you have intentions to continue operating some parts of that business in the future. When you define the terms of the sale, you need to be very clear with one another about your expectations, and you need to be very clear about what you are willing to give up.
Communication is one of the most important tenets of any successful business sale. Do not be tempted to mislead a buyer simply to get them to the negotiating table, only to to have their misunderstanding about what you are willing to sell ruin the potential transaction. An experienced lawyer like Kristen Hayes of Integrated General Counsel can help ensure that the terms of your sale are well documented, and that each party understands the nature of what they are buying or selling.
For more information about selling your business and defining the terms of your sale, please call Integrated General Counsel today.
- California Government Fights Fee Collection - April 23, 2024
- California’s Stance on Noncompete Clauses - April 23, 2024
- Simplifying Cal/OSHA Workplace Safety in California - March 4, 2024
