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Tips for a smooth transaction when selling a business

On Behalf of | Dec 20, 2018 | Business & Commercial Law

Many Oregon business owners may be considering making a change in the New Year. Whether they plan to retire, move on to new ventures or let go of a struggling company, they have decided to sell their business. Selling a business is not as easy as it sounds, and those facing this decision may have many questions and concerns about how to make the transaction a profitable and positive experience.

Business advisors recommend that entrepreneurs looking to sell do not spread the news too soon. If clients learn of a business owner’s intention to sell, they may panic, and this could seriously damage the value of the company. Determining a fair value can be a complicated task, so having professional assistance is always wise since setting a price that is too high or too low may hinder the sale and jeopardize prospects of a smooth transition.

A business owner is not fully prepared to sell the company until he or she has all the necessary paperwork gathered and organized. Buyers will want to see about three years’ worth of tax records, financial accounts and contracts to get a full picture of how the business is running. Of course, a business owner who has not kept personal finances separate from the finances of the business will need to take the time to separate them so the business’ records are more accurate.

Perhaps one of the most important steps Oregon business owners can take when preparing to sell their companies is to consult an attorney for assistance in all aspects of the sale. A skilled attorney can offer advice on dealing with legal issues that may arise during the sale as well as guiding the seller through the transaction. Since buying and selling a business can be complex and involve many legal entanglements, an attorney can provide an advantage.