It’s Business, And It’s Personal

Common issues brought up when selling a company

| Aug 29, 2019 | Buying & Selling Businesses |

Selling a company in North Carolina or anywhere else can be a time-consuming process. While there is no telling what types of issues could arise in a specific sale, you can expect some points to be discussed in almost all transactions. For instance, there will likely be an emphasis placed on the sale price of the company and how the deal will be structured. In some cases, the buyer may need to pay the seller in installments as opposed to a lump sum.

When a company is sold, the transaction can be structured as either an equity or asset sale. Some sellers may prefer an asset sale because it frees them from any future liability. However, there are generally ways to address liability concerns regardless of how the company is transferred from the current owner to the new one.

The sale may be contingent on certain conditions being met. For example, a buyer may need to obtain government permits or other regulatory approval before the sale can close. It may also be necessary to confirm the accuracy of representations made or the validity of any warranties provided as part of the deal. Finally, the parties may need to ensure that the transaction itself is not prohibited by law before it can become official.

Prior to selling business assets, it may be a good idea to consult with an attorney and a tax professional. The tax professional may be able to determine whether the transaction minimizes the amount of money owed to local, state or federal authorities. An attorney may be able to review the deal in its entirety to determine that closing on the deal is in the seller’s best interest. An attorney may also work to ensure that a transaction can obtain regulatory approval.

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