North Shore Commercial Lawyer
Wednesday, June 10th, 2015A Lawyer’s Role In Selling Your Business
Brandon Cullen
Selling a business is not an easy task. There are so many things involved in selling or buying a business. In fact, no one should consider selling or buying a business without consulting a certified public accountant and a commercial lawyer. This is the best way to derive the maximum benefits from selling your business. This article highlights some of the most important functions of a lawyer’s role in selling your business on the North Shore.
The worst time to sell a business is when its owner has no other choice, but to sell it. There are so many immediate factors that can affect the success or failure of the sale. The health, financial state, outlook and the tax ramifications of the sale are some of the most important factors to consider in this regard. The lawyer will not have much to do in relation to these factors of the enterprise, however, once the owner makes the decision to sell his or her business , a lawyer with experience in commercial law should be an essential part of the sales team. The lawyer can assist in the preparation of a package of information that is vital in offering the business in the open market. Lawyer s who have experience in assisting sellers and buyers of business will have their own checklists and contract forms prepared for such cases. A good lawyer should get to know the other professionals in the sales team and be willing to work together with them.
A lawyer who deals with buying and selling enterprises are known as a business or commercial lawyer. They are not involved in criminal, personal injuries and other fields of law. These professionals are specialised in business law and related subjects. They have good contacts with other professionals that are related to their industry such as bankers, accountants, commercial real estate brokers, business brokers and valuers. A lawyer should provide valid business advice in selling your business. They should be able to advise the business owner on the pros and cons of asset sales versus selling shares in the business. A lawyer should advise the business owner about the nature of seller’s responsibilities in the sales transaction and warranties that may be expected by the buyer too. These are some of the most important tasks expected through a professional business lawyer in selling an enterprise.
Many sellers are afraid that they may have to take over the business once again upon the buyer’s default. This happens when the seller remains a guarantor for debt assumed by the buyer. The only way to avoid such a risk is to refuse to guarantee any debt or finance any part of the sale. Most of the time, such clauses may eliminate good buyers or adversely affect the sale price of the deal. This where the professionalism of the lawyer comes into effect. The lawyer should advise the seller the best way to do this. Before the sale process begins, the seller should have a prototype asset purchase agreement or a stock purchase agreement with all aspects in place. This way, the negotiation process could be focused on the price and financing rather than the buyer trying to extract critical business information from the seller. This is where a good lawyer will come in handy.
In conclusion, selling a business is not an easy task at all. It requires meticulous planning and execution if you plan to acquire the best profits in the deal. This is where the importance of a professional North Shore commercial lawyer like McVeagh Fleming & Partners comes in handy. This article provides a comprehensive overview of a lawyer’s role in selling your business on the North Shore. It will help you sell your business for the best price.
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