For many Louisiana business owners, creating a viable service or product and constructing it into a thriving enterprise is a life-long process. Eventually, however, the owner may want to move on. That could be to retire, start a different business or move in a new direction. When assessing options, having legal assistance with buying or selling a business is key.
There are many factors to consider with a business. The ideal time to sell a business depends on the owner’s goals, economic factors and analysis for the future. The same holds true for buying a business. Since these issues can be complex, it’s wise to be fully prepared long before the final decision has been made.
It’s difficult to get a fair price without a baseline as to what the business is worth. Some business owners will overreach and seek too much when selling. They might make the mistake of equating their efforts with the objective value. To avoid this, an accurate appraisal can be beneficial.
It’s important to not forget about financing. Many businesses are seller-financed. This means that when selling the business, the buyer will want the seller to address this part of the process. Understanding collateral and having legal safety nets in place can assuage many fears.
In the agreement, there should be the identity of the buyer, seller and the business itself; a list of assets; how much it’s being sold for; the terms of payment; inventory; broker fees; closing dates and more. Because there are so many factors in buying or selling a business, it can be helpful to partner with a lawyer. This might be a critical step in a successful purchase or sale of a business.