Buying or selling a business is a major decision for any business owner. When you invest in a business, you spend considerable time, money, and effort in creating a strong place for yourself in the market. All your efforts are directed towards two things – surviving in the market and growing your business. Though most of us try to achieve these goals simultaneously, some business owners reach a point where they realize it’s best to sell their business. If you too are in a similar phase of your life, then continue reading.
Selling a business involves finding the right company with experienced leaders which has a significant market share. It also requires you to do a careful valuation and come up with a fair price for your company. You will need a business lawyer in Edmonton to prepare all the necessary documents and pave the way for your exit from the business. Let’s take a look at what all steps are required for selling a business and how a lawyer can help:
Determine the Value of Your Company
The first step to selling your business is to find out what it’s worth. You can do this with the help of a business lawyer in Edmonton. While setting the price for sale, do a clear analysis of the market. Don’t get carried away by the efforts that you have put in building your company and price your business very high. This will leave you without any buyers for your business. You can also consult a business appraiser while determining the value of your company. The simple logic to follow while doing this is making sure that your final valuation is more than the value of the simple assets of your company.
Seek Potential Buyers
If your business is a well-known brand, then spreading the word that your company is on sale will fetch a lot of potential buyers. But, if you own a small business, then attracting buyers might be a challenge. The market for selling businesses is fractured and inconsistent. Hence, this process might take some time.
You can begin by publicising the sale of your business in the right places, like on business sale websites or in startup conferences where angel investors meet up. You can also take the help of your business lawyer in Edmonton or hire a business broker to sell your business. Another way to look for buyers is by asking other business owners included in your circle.
Include the Essentials of the Agreement
While preparing your sales agreement, you will need your business lawyer in Edmonton to draft and review the document. Some of the crucial things that your agreement should include are as follows:
- Names of the relevant parties
- The assets being sold
- Terms and conditions
- Purchase price
- Terms regarding the access to your business information
- Date of closing for your business
- Compliance with all government-related entities.
In order to accomplish all this, you need to hire a good business lawyer in Edmonton. Get in touch with us to book a consultation today.