To be able to successfully leave a business, there must be effective communication with the right people and choosing the right people to share this information with is one of the struggles of a business owner. The absence of good communication may result in the exit plan failing.
When preparing your business for sale, you will want to present the most accurate, up-to-date information about the business for prospective buyers. Known as a selling memorandum, this document is a marketing piece designed to highlight all aspects of your business.
Business owners seeking to sell their companies are well advised to first consider undertaking a due diligence investigation of the company. A thoughtful evaluation of the business before the sale process starts will make the process more manageable, efficient, and cost effective for a seller.
When selling or buying a business, use a Non-disclosure Agreement (NDA) or Confidentiality Agreement (CA) with buyer prospects to keep control of your proprietary information. It helps you protect your business secrets such as customer data and pricing.
A Letter of Intent is a formal document that is provided by the buyer after an initial period of due diligence has been completed. This forms the basis for a legally binding Business Sale Agreement. Make use of this template to draft your own letter of intent (proposal) to purchase a business.
A Business Bill of Sale is a legal document that recognizes the sale and change of ownership of a business and all its assets. The Business Bill of Sale sets the terms for the sale, details key information of the buyer and seller, and acts as a key record of the final transaction. The Business Bill of Sale is needed and required whenever a business is being sold. The local and state governments need this document as proof of ownership for permits and other registration processes. If a Business Bill of Sale is not used, then ownership of a business may be questioned and disputed, among other legal ramifications.