We at Carpenter & Lewis PLLC understand that you may want to sell your business, and that’s great. However, this is an important decision and there are many factors that may bring you to talk to a business sale lawyer in Knoxville, TN.
Business Sale Lawyer in Knoxville, TN
There are many ways to sell a business, and the lawyers here at Carpenter & Lewis PLLC are prepared to discuss the differences in these ways and what is best to you. Trust that we will use our extensive experience in your favor.
You may sell your business with the help of a business broker, by canvassing competitors, contacting industry consolidators, or presenting yourself as an acquisition target. However, each requires different amounts of involvement in the process from you.
You want to think like a “buyer”, recognize what your buyer would be looking at when regarding your business. Most buyers look at business valuation, financing mechanisms, and risk factors. They also want to see how new owners can be integrated into the business’s existence.
First Thing’s First
Get your business assessed. You want to receive a competitive price, and an official statement will help you negotiate your price for the better when handling buyers. You want to then gather all of your business records, such as transactions, account manager information, information about service providers, and more. The more organized you are the better, and a lawyer can definitely help you track down these documents and information.
Then you want to prepare a business sale agreement, which is when you really need a lawyer that focuses in a business sale in Knoxville, TN. The United States Small Business Administration has a specific subset of information that must be presented in the agreement, and your lawyer is going to be the best person to know what that information is.
Some of that information is:
The business’s official name
Assets that are included in the sale
Breakdown of allocation of assets
A non-compete clause if needed
Brokers fees and other fees
Date of closing
Inventory of all assets and belongings that are included and excluded in the sale.
Warranties, guarantees, and more that the seller promises.
Having a lawyer at your side, you can ensure that everything is in proper order for your agreement. You can always add to the agreement but you must have the required basics as per the SBA, or you can get into trouble. A lawyer will be able to see whether your agreement protects you or not; and believe us, you want to be protected when selling your business.
If you fail to protect yourself, you could leave yourself liable for any damage to the business or loss to its value, and you would have to reimburse the buyer that amount. Verification is another important part in the process that a lawyer can help you with, because once its signed you cannot change it.