What can your business sale lawyer do for you when you sell your business? We will:
- Make sure all corporate legal documentation is current.
- Examine any shareholder agreements prior to the sale to make sure there are no unforeseen problems.
- Examine all your contracts and agreements, such as:
- Premises leases
- Employment agreements,
- Franchise agreements
- Supplier and customer agreements, etc.
We will examine these documents and explain any issues to you early in the process will prevent problems down the road.
Throughout the process, we will also be available to provide guidance and advice. For instance, your lawyer can address any legal questions or problems that arise during the buyer's due diligence process. We also provide valuable assistance in negotiating the purchase and sale agreement and all supporting documents. Because the purchase and sale agreement is generally prepared by the buyer's lawyer, your lawyer will ensure your interests are protected and that the agreement represents your interpretation of the deal.
Finally, we will work with the buyer's lawyer to ensure a timely and thorough process and steady movement toward closing the deal.
Other Helpful Business Sale Information
Selling a business isn't like selling a house. Selling your house is usually as simple as making it look appealing and then hiring a realtor. But selling your business involves much more planning and preparation before you simply hire a business broker. It's also advisable to learn about the due diligence process and the purchase and sale agreement.
Business Succession Planning (Exit Planning)
Your business is likely your biggest, or one of your biggest, assets. Succession planning helps you maximize the value of that asset. Even if you're not planning to sell your business in the near future, it's wise to have an exit plan in place to protect your business against unexpected events.
Preparing for the Sale
Once you've decided to sell and worked with your team of advisors to establish the framework, it's time to start preparing the business for sale—enhancing its value—to maximize the selling price.
Your advisors have determined the value of your business or, more accurately, a range of values. The final determination of value depends on the potential buyer's perception of your business.
There are many ways to enhance the value of your business and create a more favourable impression. These measures, usually called value drivers, can effectively increase the sale price and also get you more favourable deal terms.
Choosing a Business Broker
Many sellers make the mistake of using an unqualified business broker. In Alberta, the sale of businesses is not regulated and anyone can act as your broker. Selling a business is far more complicated than selling a house or commercial property and requires thorough knowledge and a different skill set. It is very important to evaluate the business brokers in Calgary, and choose someone with experience and knowledge with whom you are comfortable working.
Due Diligence Preparation
The due diligence process is the investigation the potential buyer will engage in after you have accepted the offer to purchase to ensure that your business is worth the investment. Many deals fall apart during due diligence, often because the buyer finds something unexpected that, even if it is easily resolved, turns the buyer off the idea of purchasing.
The Business Sale Agreement
Many buyers and sellers make the mistake of using standard form real estate documents. These agreements are not designed to deal with all the issues involved in buying or selling a business. Using these agreements can cause a lot of grief, confusion and uncertainty on both sides.
A business sale agreement (Purchase and Sale Agreement) is a much more complex legal document than a house purchase agreement.
Make Sure the Sale of Your Business Goes Smoothly
We have helped many business owners through the legal requirements of selling their businesses, and we will help you with the same legal services. Contact us today.