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What to think about when selling a company

| Oct 24, 2019 | Buying & Selling Businesses |

Selling a business can be challenging for both novice and experienced business owners. However, there are steps that those in North Carolina and throughout the country can take to maximize a company’s sale price. It’s generally a good idea for a business owner to work with a broker or other type of representative during the sale process. This person may have connections to accountants and other professionals who can provide value during the sale process.

These individuals may also be able to work directly with a buyer on a seller’s behalf. Buyers will want to be able to verify that they are getting good value for their money. This can be done by providing accurate financial statements, information about the management team and other data to verify that the company is worth a seller’s asking price. While sellers want to be transparent throughout the sale process, it’s also important to keep sensitive information private.

It may be a good idea to have a buyer sign a non-disclosure agreement (NDA). Ideally, the terms will be crafted by an attorney and strike a balance between a buyer’s need for due diligence and the seller’s need to protect his or her interests. The agent representing the seller might be able to help a business owner determine what this balance looks like.

Generally speaking, business transactions are complex events that can take weeks or months to complete. Therefore, it may be a good idea for a business owner to retain an attorney to represent his or her interests. An attorney could organize data or take other steps to help with the due diligence process. Legal counsel may also review non-disclosure or other agreements that are reached during the sale process before they become binding.

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