It typically takes time and planning to open a business. The same is true when you decide to sell your Florida small business. To make the most of your sale, enlist the help of your business lawyer or corporate counsel. This article covers some of the decisions and actions that often occur when selling a business.
Type of Sale
Are you selling shares in a corporation or LLC? The buyer is taking your membership or shareholder business interests and all that goes with it.
Some business sales are called asset sales. In this type of sale, the buyer would be buying your assets, but not the legal entity. This helps the buyer limit liability from the company’s past actions.
Once you know what type of sale you are pursuing, you can begin preparing.
Analysis – Your Florida Small Business and the Market
It’s not always easy to calculate how much a business is worth. However, skimping on the research and planning at this step could put you at a disadvantage. Considering talking to your CPA, business lawyer, or a business broker about the actual value of your Florida small business.
Also, consider analyzing the market. Is this a good time to sell your kind of business? If not, can you wait until the market is better?
Preparing Financials
Buyers will expect to see how your business is doing financially before they make an offer. Your internal accounting department and CPA can help pull the information together. You may also have to show potential buyers proprietary company information and intellectual property assets.
Discuss Legal Concerns with Your Attorney
Some of the information that buyers review should not be made public, like company proprietary information or trade secrets. It’s wise to ask potential buyers to sign a non-disclosure agreement where they promise not to disclose or misuse the information you give them. Your business lawyer can discuss non-disclosure agreements with you.
Another area of concern where your lawyer can help is in preparing or reviewing letters of intent and contracts. Because of contract law’s complexity, we strongly encourage you to have an attorney review any contracts before signing them.
Talk to an Experienced Attorney About Selling Your Florida Small Business.
A final area of concern does not apply to all businesses but should be considered. If you are selling only your company’s assets, you might need to file paperwork with the Secretary of State’s office to dissolve your company.
As with any business transaction, it’s in your best interests to have your legal documents reviewed by a business attorney.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.