The sale of a business can be a complex process. A legal mistake can bring the entire sale process to a halt. Legal mistakes can also be very costly mistakes. In this article we will take a look at what you can do to avoid these kinds of mistakes when selling your business.
Mistake #1 – You Skip The Non-Disclosure Agreement
Skipping the non-disclosure agreement invites trouble. The NDA agreement backs you up if a deal falls through. This document ensures that a prospective buyer doesn’t tell people that your business is up for sale. There is no guarantee that a deal is going through until it actually is 100% complete. You always need a non-disclosure agreement, because there is plenty of room for things to go wrong.
Mistake #2 – You Don’t Work With An Attorney
You need an attorney if you are selling a business! There is no replacement for working with an attorney. It is vital that you get your business ready to sell. This means getting your paperwork organized and making sure that you have legally checked all your boxes. It can make buyers nervous if you are not prepared for the deal.
Mistake #3 – You Failed To Get A Letter Of Intent
A letter of intent is a necessary legal document. You should not skip this step. The letter of intent works to protect the seller’s interest and outlines expectations. The letter of intent ensures that you are only dealing with serious buyers.
The more prepared you are before beginning the sale process, the greater the chances of a successful transaction. You should begin working with a capable business broker and attorney long before putting your business on the market. Their input will help you avoid a range of costly and time-consuming mistakes. EBIT Associates can help you prepare for the sale of your business.