Selling Your Business? Don’t Make These Legal Mistakes
Selling your business by yourself can be a complex process with many legal pitfalls. Hallmark Business Brokers stands ready to assist you with the sale or purchase of a business, but you should understand some of the top legal problems that occur during business transactions. Let’s review them:
You skipped or forgot the non-disclosure agreement — When you sell a business, you will need to disclose financial information and other items to prospective buyers. You are provided some security from losing confidential information with a non-disclosure agreement (NDA). If you disclose this information without an NDA and the deal falls through, you have no protection from the prospective buyer disclosing the fact that your business is for sale, your financials, and so forth. This is a major legal problem that must be avoided.
You sell without the services of an attorney — This is a very risky move because of the complexity of a business sale. You should always retain an attorney with knowledge of and experience with business transactions. Before you put your business out for sale, you should also review and prepare your books, legal documents, and ensure you have no outstanding legal issues that will delay or block the sale. Hallmark Business Brokers can assist you in finding a business transactional attorney to assist you.
You fail to get a letter of intent — Selling your business is complex, time-consuming, and full of delays. One delay you can avoid is requiring a letter of intent from serious buyers. If you are operating and selling your business, what you don’t want are casual shoppers looking for a business without any serious intent to buy it. Even more difficult is a buyer who is using your business as leverage to get a better deal on another business. A letter of intent before getting too deeply into the transaction will help ensure you are dealing with a serious buyer.
These are just some of the legal and other issues that occur when selling your business. Don’t go it alone — you need the experience and knowledge of an experienced business broker. You need Hallmark Business Brokers; call us today at 941-445-4726.