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.