Planning for sale of business comes with various legal concerns. This makes the need for legal counsel imperative in the process. Individuals, however, often seek an attorney’s help too late in the selling process. At this point a potential buyer or seller has already been identified, and financial terms have already been settled. In some cases, sellers receive unsolicited inquiries from potential buyers or intermediaries and negotiations have already been entered into, sometimes prematurely, without the sellers exploring other options. In other scenarios, parties execute agreements, such as confidentiality agreements, without an attorney having the opportunity to review the agreements.
Once a seller has decided to sell a business, steps need to be taken in order to ensure a successful business transaction. The process of planning for sale includes an examination of the target buyer, an assessment of the need for and selection of an intermediary, preparation of marketing materials, and creating and extending employment arrangements to key employees.