Finding the right buyer is the most important thing when selling your business. The right buyer is the one that has the financial means to purchase your business, is genuinely interested in buying your business and will run the business with your wishes in mind. If you and your business broker Winter Gardens believe you have found the perfect buyer, there are a couple of documents you will have to prepare for closing. Here are the main ones.
Final purchase price
When listing your business, you will have the selling price listed. However, buyers will seldom buy your business at the set price. They will negotiate. It is one of the duties of a business broker Winter Gardens to ensure you get the best end of the bargain. Once the negotiations are over, you will be left with the final purchase price. This has to be put down in writing. Your business broker in San Diego will include everything ranging from prorated rent to final accounts receivable and accounts payable.
Purchase and sale agreement
Buyers want to be certain that everything is done legally. That is why it is important to work with your business broker, attorney and accountant to draft the purchase and sale agreement. Without this document in place, buyers will walk away.
Closing or settlement sheet
This is a document that lists the purchase price and price adjustments which will be paid by or credit to the seller. Unless you are using escrow, your attorney will have to prepare this document.
Was your business structured as an LLC or corporation? If yes, you will need to pass a corporate resolution which authorizes the sale. For sole proprietorships, you don’t need any more documents. The business will close automatically once the proprietor ceases operations.
Government and tax forms
The Secretary of State or the Corporations Commission may require that you provide government and tax forms. DMV transfer documents as well as documents to transfer intellectual property will also be required. You have to complete Form 8594 with the IRS to show identical allocation of the purchase price.
Other documents you will need include:
- Succession agreements
- Equipment and furniture sale list
- Contracts and agreements
- Loan documents
- Accounts payable and accounts receivable
- Building lease
- Any exceptions to representations and warranties
- Work that is in progress
The list is much longer than this. The best you can do is work closely with a business broker Winter Gardens. The broker will ensure that you get everything right without leaving any stone uncovered. Only work with brokers who specialize in the sale of businesses that are similar to yours.