- The best first step is to do a business valuation to determine how much your business is worth, its readiness, ability to sell and of course, the right timing.
- It is best to sell when the business is somewhat profitable, so it may be best to increase profits, have consistent income figures and a strong customer base before selling.
- Prepare all financial documents. Gather financial statements and tax returns dating back three or four years. Review these with your accountant.
- Develop a list of equipment, create a list of contact related to sales transactions. Gather up any leases etc…
- Now it is time to reach out to potential buyers. Selling the business yourself will save you money and it is always best to sell to a trusted family member or current employee. Determine if potential buyers pre-qualify for financing.
- You can also employ a broker to assist with the sale, but this will lessen your sales price.
- Try to get the signed agreement into escrow.
- Obtain the bill of sale, assignment of the lease and a security agreement which has the seller retain a lien on the business.
A new buyer of your business may have you sign a non-compete agreement to ensure you do not start a new, competing business which may steal customers away.
Profits From the Sale
Take a few months before spending all the profits from the sale. Outline your financial goals. Understand all tax consequences. Invest the money for long-term benefits.
Paul J. Burkhart can assist with selling your business. As a business and corporate attorney, Paul J. Burkhart can help draft any agreements necessary and ensure all transactions are completed compliant with the law.
Our team assists both individual and business clients with all their legal needs. This includes Business and Corporate Transactions, Business/Commercial and Civil Litigation, Real Estate, Intellectual Property, Family Law, and Estate Planning matters. We are a full-service private law firm ready to assist you with any request, large or small.
Law Offices of Paul J. Burkhart, PL
800 Village Square Crossing
Palm Beach Gardens, FL 33410
Phone: (561) 880-0155
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