Finances play a major role when it comes to owning and operating a business. When starting a business, it is essential to have the funds to get your business ideas rolling. The continued operation of your business is reliant on the profits of the business and the management of the business finances.
Finances also play a role in the business dealings with other companies, the ability to expand the business, the decision to acquire another business and even when you seek to sell your business. Each of these processes require detailed documentation of finances in order to help move the business dealings forward.
Selling your business
At Aman Law firm, we understand that sometimes business owners must make serious and difficult decisions. Selling your business may feel defeating; however, it could be the finish line you were waiting for to begin your retirement years.
No matter the reason for the sale, our experienced attorneys are familiar with all the intricacies of business laws involved in this process. Our goal is to make our clients feel at ease, ensuring their rights are protected every step of the way. As such, our law firm is committed to guiding our clients through sale preparation, valuation, negotiations, drafting the sale agreement and finalizing the sale process.
Valuing your business
To sell a business, the value must be established. This means collecting all essential financial documents. This includes financial statements, financial records, tax returns, balance sheets, liabilities and loans, assets, the metrics of the business and other related documents.
If there are discrepancies or questions regarding the business value, business documents may help to shed light on the true valuation. These documents can include the operating agreement, bylaws, any confidentiality agreements, intellectual property certificates or registrations, partnership agreements, stock certificates as well as buy-sell agreements.
A final step you might take is to hire a business appraiser. The appraiser could help establish the correct price of your business while also providing insight on the fair market price for businesses similar to yours, given the industry and the region it is located in.
Selling a business is a complex legal matter, often requiring detailed planning, lengthy negotiations and carefully drafted contracts. As such, it is essential that you not only understand the legalities of the process but also how to protect yourself monetarily and prevent liabilities.