If you decide that selling your business is the right exit strategy for you, be sure that you cover all your bases. In order to sell a business officially, you will need to prepare a sales agreement. This is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. It would be a good idea to have an attorney review this document. It is in this agreement that you should define everything that you intend to purchase of the business, assets, customer lists, intellectual property and goodwill.
The following is a checklist of items that should be addressed in the agreement:
Names of seller, buyer, and business
Background information
Assets being sold
Purchase price and Allocation of Assets
Covenant Not to Compete
Any adjustments to be made
The Terms of the Agreement and payment terms
List of inventory included in the sale
Any representation and warranties of the seller and buyer
Determination as to the access to any business information
Determination as to the running of the business prior to closing
Contingencies
Fees, including brokers fees
Date of closing
Need help coming up with an agreement, one of our small business counselors can help. Book an appointment today