In a recent article in the Denver Business Journal, Chris Hammond sets forth the following considerations when selling your business to help ensure the transaction will close:
- Composition of the Team. Assembling a qualified team of trusted advisers including an attorney, accountant, wealth adviser, and investment banker is critical to properly structure the deal, minimize risks, evaluate offers, prepare and plan for the process, and maximize the company’s value.
- Identifying the Right Buyer. This will assist you in meeting your goals whether it is obtaining the highest offer, minimizing the length of the sales process, preserving your legacy, minimizing risk, or creating future opportunities for you management team.
- The Offer. Offers other than case such as stock, debt or seller financing, and earn-out contingencies require close scrutiny to ensure you understand the risks and potential liabilities associated with non-cash offers.
- Path to Close. Understand that the process may be daunting but this is where your team of advisors will allow you to continue to focus on the continued successful business operations of the company prior to the close of the transaction. Any downturn in the business during the sales process will put the closing at risk.
- Preparation Checklist. Again, rely upon your advisers for advanced planning to avoid pitfalls. Get your books and records in order to build credibility with potential purchasers and to maximize the value of the business.
If you would like more information regarding the sale of your business, please contact our Business Law Group partner, David A. Closson at [email protected].