THE CRUCIAL ROLE OF A BUSINESS ATTORNEY IN SAFEGUARDING YOUR BUSINESS SALE
You’ve made the decision to sell your business — a moment that can be both exciting and financially rewarding. You envision riding off into the sunset with a cash payout and a promissory note from your eager buyer. However, before you embark on this journey, it’s crucial to recognize the potential pitfalls that can turn your dream sale into a nightmare. One indispensable ally you should have by your side throughout this process is a business attorney. Let’s explore the reasons why their involvement is paramount. The first and foremost reason to have a business attorney during the sale of your business is to ensure you get paid in full. Many business sale agreements involve a deferred payment component, meaning the buyer pays a portion of the purchase price over time. Buyers, however, may not always be keen on honoring these payments once they’ve taken control of the business. Having an attorney during the documentation of the deal serves multiple purposes. They can secure valuable collateral for the buyer’s obligation and meticulously inspect the contract for any potential loopholes. Identifying and addressing these issues early on can prevent the buyer from
finding ways to avoid making their scheduled payments, ultimately safeguarding your financial interests. Once the business changes hands, some buyers may find themselves grappling with the reality of the challenges involved. Discrepancies between their expectations and the actual demands of running the business may lead to frustration, and in some cases, legal action. To shield yourself from potential lawsuits, it’s imperative to have a business lawyer craft airtight purchase and sale agreements. This legal expertise ensures buyers cannot later complain or sue you over the terms of the agreement. Business sales involve more than just transferring ownership; they entail passing on existing relationships with landlords, lenders, trade creditors, and suppliers. Unfortunately, not all buyers fulfill their financial obligations to these entities, leading them to seek recompense from the original business owner. To prevent creditors from knocking on your door after the sale, a business attorney becomes essential. They help facilitate the proper transfer of these relationships to the buyer and ensure everyone involved understands that you are no longer liable for debts related to the business. In conclusion, while selling your business can be a thrilling and financially rewarding experience, it is not without its challenges. The importance of having a business attorney by your side throughout the process cannot be overstated. From securing your payments to protecting you from post-sale legal hassles and shielding you against business creditors, their expertise is indispensable. If you’re considering selling your business and have concerns about protecting yourself throughout the process, consulting with a business attorney is a prudent and proactive step to take. After all, a successful business sale is not just about the transaction; it’s about securing your peace of mind as you ride off into the sunset to your next venture.
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