Many people make the mistake of overlooking all the various legal issues involved when selling a business. A legal mistake can bring the entire process to a halt. It may even cost you a small fortune. Here are some key legal points to consider before placing your business on the market.
Have A Non-Disclosure Agreement
Have a potential buyer sign a Non-Disclosure Agreement (NDA). This is of critical importance. If the deal falls through, which often happens, the buyer can’t disclose the details to other parties. Without a NDA, the buyer can reveal important aspects of your discussions. This could impact future sales.
Get An Experienced Attorney
When you decide to sell your business, investing in an experienced attorney is a must. A good attorney can create ironclad agreements. There is an array of risks that sellers face when selling a business.
Don’t Skip The Letter Of Intent
A Letter of Intent is another legal way to protect your interests. This letter is one of your key tools in negotiating the deal. Include a termination fee for the buyer in this letter. This applies in the event that the buyer walks away for a reason that is not the seller’s fault. This clause helps to attract only serious buyers.
These are just a few legal points to consider when selling your business. Take the time to prepare for the sale of your business. EBIT Associates has an experienced team that will help you avoid costly mistakes.