When you’re about to sell your company, you need to have a good grasp of all the legal aspects. So, does that mean you need a lawyer?
There are a lot of different parts of the process to consider, like taxes, contracts, employment, intellectual property, and plenty of other stuff that can bite you if you don’t have the right advice. Here are some aspects of the selling process a lawyer can be very useful:
The Goodwill
Goodwill is the measure of how your business is viewed on the market. However, this is something you can’t touch.
Goodwill is the intangible value of a business and is created by things like reputation and brand. It is the value of the business itself and is what determines what you can sell the business for.
Some people also describe goodwill as being equal to the company’s worth. If you have goodwill in your business, this means that it is worth a lot more than your actual financial assets. Your employees and customers are part of your goodwill.
The Physical Things You Need to Sell
The physical assets you must sell to sell your business are fixed assets. This includes assets such as your equipment, stock, and inventory.
Be sure to put as much of your physical assets into the company’s balance sheet as possible. This will increase your company’s worth, and you’ll make more money when you sell your business.
Permits & Licenses
To sell your business, you need to be sure to check all of the legal requirements. You’ll need to obtain all permits and licenses that are required to run your business.
For example, if you run a dog grooming business, you must have the necessary licenses and permits to operate. If your business is located in a shopping mall, you will need a lease agreement and permission from the landlord.
You will also need to ensure that there aren’t any legal issues that might prevent you from selling your company. For example, suppose you’re selling a plumbing company, and you’re under investigation for an environmental violation. In that case, you may need to get all of the legal issues resolved before selling your business.
Why You Need a Lawyer When Selling Your Business
A lawyer will help you with the legalities involved in buying and selling a business. They can assist you with tasks such as identifying the value of the business, preparing the business for sale and drafting purchase agreements.
A lawyer can also be helpful when you start to market your business for sale. There are a lot of legal considerations when it comes to advertising, such as ensuring that your advertisements don’t infringe on others’ trademarks.
There are also risks and liability issues to be aware of when advertising the business for sale. You need to be sure that all information is correct and that you aren’t going to mislead anyone in any way.
They can also assist in the transfer of the assets, and or licences and permits and legitimise the transfer of ownership.
Sell Your Business Fast
As you can see, there is a lot to consider when you are planning to sell your business. Some aspects can be handled without a lawyer’s help, but you should definitely hire a lawyer when you have to deal with legal issues. This way, you’ll know that everything is done correctly, and the process will be easier.
GLG Legal is a commercial and property law practice in Brisbane. Our commercial lawyers offer real-world solutions. Get a consultation today.