Here Is Why You Need Legal Advice Before Selling Your Business
Do you own a business on the North Shore of Auckland and you are considering selling it? If you are, then the chances are it was not easy to make that decision, but nonetheless, you are ready to sell. If that is the case, then you will want to get legal advice before selling your business, and we will discuss some of the reasons why you should talk to a commercial lawyer for selling a North Shore business.
1. Determine The Value Of Your Business- Before you sell your business, you will want to determine the value of it, as this can help you set a price, but it is easy to undervalue or overvalue your business, and that is why you need legal advice. When you get proper legal advice from a professional that knows what they are doing, then they will be able to help you determine the value of your business. When you speak with an experienced commercial lawyer that knows the ins and outs of selling a business, then you will know how much you should sell your company for.
2. Help Determine What You Want To Sell- An experienced lawyer can make a huge difference to your final outcome which will depend on what you want to achieve. For example, do you want to have any ongoing involvement in the business whether that is as an investor or even an active role? Alternatively, do you want to exit the business completely? If you run a large company then you may need help deciding whether you should sell your business via stock option or asset purchase. There are a few pros and cons to both and knowing these differences is very important, and you need to have a clear idea of which is the better option to go with.
3. Know Exactly What You Need To Do- There are many different things that you will be facing when sell your business, and this includes letters of intent, financing options, lease transfer and things of that nature. Some of these things you may not fully understand, therefore it is a must that you receive legal advice. The last thing you want to do is to do something wrong, as this could end up delaying your plans to sell your business, even halt it or cost you money in the long run.
4. Get Advice About Debt And Your Company- Another reason why you will want to get advice before selling your business is your business may be in debt, and this may affect how you can sell your business. There may be certain things you will need to do before you can officially put your company on the market. When you know what the implications are involving selling your business that is in debt, then you will know exactly what you will need to do.
5. Know How To Handle Contracts And Agreements- Before you sell your business, you will want to know how to handle contracts and agreements. This means you will want to understand the contract and you will want the buyer to fully understand the contract. Contracts and purchase agreements are often based on the real estate Sale and Purchase Agreement but they generally have additional clauses which you want to make sure are in your favour. For bigger sales, the contracts can be complicated, but here again, this is where the experience of your local commercial lawyer on the North Shore can help with business sales.
As you can see, it is very important to get legal advice before you sell your business, and the above reasons are just a few reasons why you should get legal advice before selling your business. Making the decision to sell your business is hard enough. Make things easier on yourself and make sure you speak to a commercial lawyer for selling a North Shore business before selling your company.