Selling a company—even a small, family operated business—is not a simple matter. Before signing any paperwork, it’s essential to obtain a business lawyer who is experienced in working with businesses as they prepare for sale. As business lawyers in San Jose and the greater San Francisco Bay Area, we have had experience in assisting shareholders and management teams in mergers and acquisition transactions as they prepare for this critical juncture in the sale of their business.
Selling a business is, in and of itself, a full time job. For that reason, your corporate attorney can assemble a team of experts whose services you’ll need, such as a business broker or tax advisor. Next, it is critical that your business processes, financials, and documentation be reviewed, and, if necessary, corrected, so that a potential buyer’s investigation into your business’s affairs will be smooth. This review can also uncover areas of risk that may be present in a transaction so that you can determine how they can be best assessed.
Once you start considering potential buyers for your business, you attorney can help in creating the initial documentation. For example, your corporate attorney can devise a confidentiality agreement that your potential buyers will be required to sign before you disclose any proprietary information. He or she can also prepare a letter of intent which outlines the terms of the sale for all parties to agree to before moving forward.
The old adage, “the earlier the better” holds true in working with your lawyer in selling your business. Involving your lawyer early can put you in a much better position toward a successful sale of your business.