You’ve been running a successful company for years now and have decided it’s time to move on to the next chapter. You want to obtain the maximum value for the company and also ensure that the new owner has a stable platform to build from.
One thing you want to do is ensure that everything is above board legally. Outlined below are some of the key legal considerations of selling a business.
Obtaining an accurate valuation
There are many moving parts at play when making a business valuation. Your previous revenue, current projections as well as expected growth will be taken into consideration. Additionally, the levels of stock and tangible property that you have at your disposal will also be factored in. You want to generate a price that attracts potential buyers, but at the same time, you don’t want to price yourself out of the market with unrealistic valuations.
Protecting trade secrets
Potential buyers are interested in your company largely because it is unique. No other company can do what you do. However, this will only remain the case if you protect your intellectual property. Your company could be devalued and potential buyers put off if what you do can simply be replicated at a lower cost. Make sure you consider legal instruments such as non-disclosure agreements between staff and clients before placing your company on the market.
Selling a business is a big step but it can be extremely rewarding. Having experienced legal guidance in your corner will help ensure that everything remains above board and you secure the best possible price.