Selling a business is as big a milestone as buying or opening it in the first place. If it’s time to sell, it’s important to do it right and with the help of a Plano, TX business lawyer. There are a number of key steps, and a successful sale will require some strategic planning.
What Are the Legal Steps to Selling a Plano, TX Business?
Get Your Finances In Order
You want your financial records to be very organized, and you should include in this organized layout all your tax returns, balance sheets, cash flow statements, and profit and loss statements since the business began or since you took it over. You also need to do a full review of your assets and liabilities. If you’re able to resolve any liabilities, you’ll want to do so, so that your balance sheet looks as good as possible.
Get Your Operations in Order
If you’re looking to sell, you want to present a well-organized machine that doesn’t need a ton of work for the new owner to make it profitable. Start documenting your standard operating procedures, if you’ve not already done so, so it’s easy for someone to step in. Make sure that all your contracts and licenses can be transferred to a new owner, and if you’re able to diversify your customer base and your suppliers, do so. Buyers tend to get nervous when they see that a business relies primarily on just one customer or one supplier.
You’ll also have an easier time finding a buyer if you’ve already evaluated your people and can tell a buyer immediately which employees are vital to the success of your business. Make sure that all the contracts and policies you have with your employees are up-to-date and legal.
Talk to a Business Lawyer
You’ll want to talk to an experienced business lawyer who can help you understand all the legal concerns that come with a business sale. A good lawyer will also be able to help you understand the tax implications and figure out the best structure for your sale to maximize your profit and minimize liability.
Get All Legal Agreements Dealt With Properly
As you reach the finish line, it’s very important to do the last steps in particularly very carefully. Make sure you have a lawyer working on your transfer of ownership and all the terms and conditions of sale. Your lawyer will also be able to make sure that all the payment and closing fund costs are transferred legally and securely.
Keep Very Careful Records
All along the way, keep comprehensive, careful records. Make a note of every step you take, make copies of every important document, and save all communication that you have with potential sellers, business or asset valuators, lawyers, tax professionals, and anyone else involved.
For the kind of individualized representation that can make all the difference to your business needs, schedule a consult with us at DeCandido & Azachi in Plano, TX today online or by phone at 972-882-6600.
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