It’s Business, And It’s Personal

Important considerations when selling a business

On Behalf of | Jul 31, 2018 | Buying & Selling Businesses |

Selling a business in North Carolina is a process can be made smoother with careful planning. For starters, it’s usually recommended that a seller really know their company, its value, and what they want to accomplish with a sale. For instance, completely giving up ownership of a business and opting for an equity partner are two entirely different processes legally. While purchase price is frequently a top factor with such arrangements, it can be just as helpful for sellers to consider cultural and strategic fit, contract terms, and certainty to close.

Buying and selling businesses is often more beneficial for all parties when preparations start before negotiations begin. For sellers, this may include ensuring that accounting and personnel systems, company records, and income statements and balance sheets are in order. With mergers and acquisitions, prospective buyers usually like to see continued signs of growth so they can be reassured they are making a wise investment. Choosing to sell a business when revenues are down, however, can make it difficult for owners to get a fair offer or attract preferred buyers.

It’s not typically advised for business owners to go through the selling process while also attempting to juggle the demands of daily operations. For example, the burden of preparing a business for a transfer of ownership may be eased if a business owner hires an accountant to make sure the books are in order. Not having to balance multiple duties may also give business owners more time to thoroughly vet potential buyers to ensure they have the resources needed to complete a purchase.

A lawyer often helps with business transactions involving a change in ownership by negotiating contract terms. Another role a business attorney typically has is offering financial and business advice based on a review of financial records, employee and vendor contracts, tax documents, agreements involving creditors, outstanding loans, and incorporation documents.