When to Hire a Business Attorney for Selling a Businesshttps://toppinslawfirm.com/wp-content/themes/toppins/images/empty/thumbnail.jpg 150 150 sophy sophy https://secure.gravatar.com/avatar/2a04717d7e8d3f7c0c657f34720c1621?s=96&d=mm&r=g
The decision to finally sell your business, can be an overwhelming one. The thought of entirely giving up a business empire that you worked so hard to build can be overwhelming and if you are not careful, this can affect the way you conduct the entire process of selling the business.
Irrespective of the reason behind the sale of a business, it is imperative to ensure that you have an experienced business attorney by your side to help you with the selling process. Besides the financial transactions which are involved in the sale of a business, there are very many other aspects which need to be taken care of to successfully see the deal through.
Although it is possible for individuals to go through all these steps without legal counsel, the safest best is to always hire a business attorney who will take you through all the steps and ensure that you safely sell your business. To help you understand just how invaluable a lawyer’s counsel is when selling a business, here is a look at the role of an attorney in selling a business and why you should always hire one to help you with the entire process;
Role of an attorney in selling of a business
1. Preparing information necessary for offering the business
A business attorney is tasked with collecting and preparing information about the business which is about to be sold. The attorneys have a good understanding of all the necessary information required for the transaction to go through and will prepare a good package of the information for the prospective buyers to access. Without an attorney, it is easy for individuals to omit important information about their businesses and this can mar the selling process.
2. Evaluate the value of the business assets
Although this is not predominantly an attorney’s role, they are capable of assessing and valuing the business assets and give a good estimation of the business which is to be sold.
3. Advise on the best form of selling the business
The other role which business attorneys play in the selling of a business, is offering advice on the best way to sell the business. The attorney should advise the client on the advantages and disadvantages of stock sales versus asset sales. The attorney will then offer his/her recommendation on the duration over which the sale should take place.
4. Review the business corporate history
Before a business should be listed for sale, a business attorney should review its corporate history and collect vital information about the vitality of the business. The attorney will need to review the existing contract rights and obligations. Any loans, real estate leases, shareholder agreements, supply contracts and intellectual property rights will need to reviewed to ascertain if the business can be legally put up for sale.
5. Obtain third-party consents from lenders or parties to other contracts
The attorney will also be tasked with obtaining third party consents from any lenders or parties to the contract concerning the sale of the business. The attorney will personally have to contact all these relevant parties and get their word on whether the process can proceed or not.
6. Drafting, reviewing and modification of selling agreements
It is the role of a hired business attorney to draft, review and modify any selling or leasing agreements made by their clients to ensure that all clauses are properly drafted. Before handing over the selling or leasing agreements, the attorney needs to go through all the terms and clauses therein to ensure that there are no suspect clauses which might lead to litigation or lawsuits against the seller of the business.
7. Negotiate contracts on behalf of clients
Business attorneys are also tasked with negotiating contracts pertaining the sale of a business on behalf of their clients. With their knowledge in business law, they are capable of not only advising clients on the best course of action to take when selling a business but are also capable of personally taking part in contract negotiations in a bid to improve the chances of their clients getting better deals.
Failure to hire the services of a business attorney when listing a business for sale can be costly not just in financial terms but in legal means as well. If proper contracts and agreements are not drafted, it is possible to get into legal lawsuits with the purchaser or third parties attached to the business you are listing for sale.
It is therefore imperative to always ensure that you hire the services of a business attorney when selling business and here at Toppins Law Firm, we offer affordable and high quality legal services which you should hire the next time you are looking to sell a business. Our attorneys have a combined experience of more than 40 years and will help you to safely and easily sell your business. Give Toppins Law Firm a call today and we will gladly be of good service to you.