Do I need a solicitor when selling my business?

Can I sell my business without a solicitor?

You do not have to use a solicitor to sell a business, however, it is highly recommended that you use one. Selling a business is a highly complex process and a solicitor will help you prepare the business for sale by: Ensuring all contracts with customers, suppliers and employees are up to date.

What legal documents are needed to sell a business?

Legal Documents Needed to Sell a Business

  • Non-Disclosure Confidentiality Agreement.
  • Personal Financial Statement Form for Buyer to Complete.
  • Offer-to-Purchase Agreement.
  • Note of Seller Financing.
  • Financial Statements for Current and Past Two to Three Years.
  • Statement of Seller’s Discretionary Earnings and Cash Flow.

What costs are involved in selling a business?

The 7 Costs Of Selling Your Business You May Not Be Aware Of

  • The Business Broker/Investment Banker Commission. This will likely be your biggest expense when selling your business. …
  • The Attorney Fee. …
  • Transfer Fee. …
  • Assignment Fee. …
  • Prepayment Penalty. …
  • Sale of Business Fee in Lease. …
  • Transfer Taxes.

Can I sell my business as a sole trader?

If you are a sole trader, you can sell the business or its assets, or form a limited company, transfer the business to it in return for shares in the company, and then sell those shares – which now, of course, carry control of the company that owns your former business.

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How do I sell my business privately?

Make selling your small business easy with these seven steps.

  1. Determine the value of your company. …
  2. Clean up your small business financials. …
  3. Prepare your exit strategy in advance. …
  4. Boost your sales. …
  5. Find a business broker. …
  6. Pre-qualify your buyers. …
  7. Get business contracts in order.

What is the procedure for selling a business?

Here are the six key stages of selling a business.

  • Structuring the sale.
  • Establishing a confidentiality agreement and heads of terms.
  • The process of due diligence.
  • Securing key issues for the transaction.
  • Signing the key documents.
  • Completion and post completion.

How do you close a business sale?

Here’s a step-by-step guide on how to close a deal and make a sale:

  1. Do your research. To be successful, you need to understand both your company and your prospect’s company. …
  2. Talk budgets and timeline. …
  3. Offer solutions. …
  4. Handle objections. …
  5. Ask for the sale. …
  6. Set up next steps. …
  7. Summary close. …
  8. Assumptive selling close.

Who pays closing costs when selling a business?

Although buyer vs. seller closing costs vary, they’re usually predictable. Sometimes, the seller can be asked to pay for some closing costs instead of the buyer, but it’s important to keep in mind that they’re already paying around 6 percent of the total sale in agent fees and commissions.

Who pays legal fees when buying a business?

When buying an existing business, the buyer and seller are each responsible for their respective professional fees, or costs. For the buyer, this would usually include attorney and accountant fees. The seller, in turn, is usually responsible for attorney, brokerage, and accountant fees.

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What costs are associated with closing a business?

Buyers and sellers both generally have closing costs, and they typically range from 2 percent to 5 percent of the purchase price of the property. Closing costs can include real estate agent fees, transfer taxes, lender fees, title fees, and more.