Britton Law, P.A.
Free Consultation For Injury Cases
Due to precautions related to COVID-19, remote consultations via teleconferencing, Facetime or Skype are available. Please contact our office to discuss if this option is appropriate for your situation. Let’s all stay healthy and safe.

Crucial steps when starting the business sale process

North Carolina business owners generally want the most money possible from the sale of their companies. To determine whether an offer accomplishes this goal, it is important to first have the company appraised. Ideally, the appraiser will be licensed and accredited, and whoever provides the valuation should be a neutral third party. By getting an estimated fair market value before putting the business on the market, it may provide an opportunity to make it worth more.

As an appraiser will have access to a sensitive financial and other data, this person should sign a non-disclosure agreement. Buyers will also need to sign this document, but they may be apprehensive to do so. Therefore, it is important to craft the agreement in such a way that a buyer can use insights gleaned from the purchase process without harming the seller's business.

One of the most important terms to understand when selling a business is Earnings Before Interest, Taxes, Depreciation and Amortization. This equation may provide the clearest picture of whether a company can be profitable now and in the future. To arrive at this figure, simply deduct expenses from total revenues before accounting for taxes, depreciation or other variables. When done correctly, it should show an accurate picture of a company's current cash flow situation.

As a general rule, the sale of a business is a complex process. However, it may be possible to make this process easier by consulting with an attorney. An attorney might reach out to appraisers, financial professionals or others who may be relevant during a business sale. Legal counsel may also be able to help put together a sale agreement or assist if disputes arise during the sale process.

No Comments

Leave a comment
Comment Information

Send Us An Email. We’ll Listen.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Britton Law, P.A.
2850 Village Drive, Suite 206
Fayetteville, NC 28304

Toll Free: 888-811-9738
Phone: 910-401-3356
Fayetteville Law Office Map

Britton Law, P.A. Office

Call Our Law Firm:

910-401-3356 ~or~ 888-811-9738
Crucial steps when starting the business sale process | Britton Law, P.A.