Many small business owners in Louisiana decide to sell their business when they no longer want to operate it themselves, whether it is because they want to move on to a new venture or they have decided to retire. There are several key considerations for business owners who are about to sell their company.
Financial records should be accurate and up to date. This is essential for pricing a business and getting the best deal in a sale. Business owners should expect to present at least three years of prior business records to potential buyers. Working with an accountant is a good idea for owners who want to develop solid accounting practices.
Company records should be organized and updated if needed. This includes the company’s bylaws and operating agreement. Business owners will need to guarantee that their business is in good standing and that all of the company’s records are true and correct. Business owners who fail to provide up-to-date records can face legal issues regarding the sale contract and breach of warranties.
Businesses that involve rights to intellectual property should make sure that rights are held in the company’s name. Buyers will want full access and control over all intellectual property rights, especially if they contribute significantly to the value of the business. Business owners should actively monitor these rights throughout their ownership of the company.
Individuals who are buying or selling a business may want to speak to an attorney with experience in business law. An attorney may help buyers and sellers avoid many of the pitfalls that go with the sale of a business. For example, a lawyer might conduct a search for outstanding liens on the company.
An attorney may also be able to help with the sale agreement for clients who are buying or selling a business. An attorney typically only represents one side in this type of transaction and works to make sure that the terms of the deal are favorable to the client.
