Selling your business can be an exciting and rewarding time. Yet, many business owners overlook the importance of focusing on the legal matters associated with sales. In this article, we’ll explore three of the most significant mistakes sellers make:
- Use an NDA
One of the biggest mistakes is not using a non-disclosure agreement (NDA) when disclosing information about the business to buyers. NDAs help protect confidential information. In addition, it is an invaluable way to restrict who does and does not know your business is for sale. By keeping competitors and employees from learning about the sale, you can keep them from trying to poach your customers or employees.
- Hire an Attorney
A lawyer with experience in buying and selling businesses can help you avoid common legal mistakes that sellers make. By working with a lawyer, you can ensure that the sale of your business goes smoothly. You are protected in the event of any problems.
- Get a Letter of Intent
A letter of intent is a key legal document in the process of selling a business. It spells out the expectations of both the seller and the buyer, while also protecting the interests of the seller.
It’s important to remember that requesting a letter of intent from a potential buyer shows that you’re taking the process seriously. This will help to protect you from wasting your time with buyers who aren’t serious about buying your business.
Working closely with a Business Broker or M&A Advisor is one of the fastest ways that you can increase your chances of a successful sale. They can help you avoid making costly legal mistakes, and can also provide guidance on how to best organize your books and present information to prospective buyers.