Checklist before Signing a Contract with a Business Buyer

One of the reasons you need to hire a business broker San Diego when selling your business is so that he can help you with all the contracts that are involved. For starters, you have to double-check the details in every written document before you sign because most of the terms are legally binding. The primary job of a broker is to ensure you don’t make mistakes that end up haunting you for years.

With knowledge that most of the terms in the contract are legally binding, here are the key things you need to check. Always ask your business brokers San Diego to confirm that the terms are fair.

Review your aims and check how well they have been met in the contract
Ensure agreements made during negotiations are included in the final contract
Ensure there are no vaguely worded exclusions, provisions or limitations in the contract. Vaguely worded terms will lead to problems later.
Check how your obligations have been worded in the contract
Make sure the necessary signatories and documentation are present before you sign.
Check the schedule of tasks for completing the business sale, the handover, continuing the business and meeting all future obligations.
Ensure you have all the copies of the negotiated agreements

Doing this will ensure there are no mistakes during or after the sale. It is also a good idea to have a transaction attorney present. The last thing you want is for terms to be misinterpreted and end up hurting you later on. In addition to the above, there are a number of things you have to make sure of after signing the contract.

Everyone who had to sign has signed all relevant documents
Your solicitor has the original documents that you need to keep
The buyer’s solicitor has copies of the relevant documents
Financial agreements are put into effect
You deregister for VAT and the new owner registers for VAT. This is more so when it comes to asset and goodwill deals
Inform employees about the sale with compliance with the law.

The sale of a business, regardless of how big or small it is must never be rushed. While your business broker San Diego will help with the paperwork, you too have a major part to play. This is more so when it comes to agreeing to the terms given by buyers. If you reject everything that a buyer wants to be done, for example, you might end up losing him.

Business broker San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process