5 things you need to know about Selling a Business
- Selling a business can be stressful and time consuming. It’s important to be clear on your goals. Are you simply looking for a purchaser who will pay the largest purchase price? Do you want to keep a role in the business? Do you want the purchaser to grow the business?
- Given the amount of time that it takes to deal with each potential purchaser, it’s important to have a screening process. Your business lawyer or accountant can assist with this, putting together a checklist of requirements you’ll have of potential purchasers. It is a good idea to structure this checklist as a term sheet. This provides potential purchasers with a clear view of the deal you are offering.
- Once you’ve decided on a purchaser, you will move forward with negotiating the sale of business agreement. It is generally the seller’s solicitor who will draft the sale of business agreement. If the sale is relatively simple, you might choose to use a standard sale of business agreement template, drafted by the law society or real estate institute of the state you’re based in.
- If the sale is more complex, you’ll probably want to work with a lawyer who specialises in business sale and purchases. In this situation your lawyer will probably draft a bespoke sale of business agreement.
- As a seller, the main goal of the transaction will be for you to exit at the price agreed without the need to worry about issues down the track. Your lawyer should therefore focus on ensuring a clean sale is agreed on, then draft and negotiate the sale of business agreement with this goal in mind.
Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising LawExperience:
Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group
Employment, Franchises, Business And Commercial, LitigationExperience:
Clinch Neville Long, McCabes, Neville & Hourn
Asset Leasing, Business Structuring/Start Ups, Employee Share Options Plans, Loans (Secured, Unsecured And Convertible), Online LawExperience:
Clayton Utz (Sydney), Herbert Smith Freehills (Sydney), Norton Rose Fulbright (London, Paris, Amsterdam and Hong Kong)