If you’re in a position where you’d like to sell your business, you probably recognize how difficult and complex the situation can be. While you might receive an offer from someone interested in taking over, you need to make sure that you negotiate to get the most out of the deal.
Whether you have a smaller family owned business or run a major conglomerate, it’s important that you have the right support as you negotiate the deal, review the business purchase agreement and get to know your rights and obligations.
Why are there often disputes during business sales?
There are a few reasons why disputes are likely to occur when selling a business. Some of the common issues that arise include:
- Failing to comply with the purchase agreement
- Fraudulently misrepresenting historical sales or other business data
- Concealing significant information about the organization or business
- Leasing issues
- Real estate problems
To protect yourself during the sale of your business, it’s smart to have your attorney work with you to create a business purchase agreement.
What is a business purchase agreement?
A business purchase agreement is a type of contract. This contract details out the conditions and terms of the sale of the business. The contract is normally legally binding and covers the full transaction.
This kind of agreement should always be used when selling a business, because it helps protect both parties. It has information on what exactly the buyer is purchasing and discloses all the information about the business, so that the seller can be sure that the buyer was well-informed.
What can you do if a buyer is threatening a lawsuit after a sale?
Sometimes, problems come up after the transaction has been completed. If you have that happen, or if disputes arise during the transaction, it is a good idea to have your attorney take a look at the situation and come up with a solution. Many contracts have arbitration clauses, which may help you prevent any disputes from going to trial. If a buyer is threatening you, it’s worth asking them to reach out to your attorney with the details of their complaint. Then, decide if there is a way to resolve the issues amicably.
Selling a business can be complex. If you’re ready to sell yours, make sure you have the right information before you list it.