Most business owners spend decades working and sacrificing in order to build a successful business. Along the way, they turn to experienced legal specialists to advise them on a wide range of issues including but not limited to taxation, human resources, and estate planning. When you decide to sell your business, it only makes sense to involve another type of legal specialist: a transactional attorney.
What does a transactional attorney bring to the table? The answer is: much more than you may realize. Here are four benefits to consider.
First, this type of specialist knows the “ins and outs” of the selling process and can get you where you want to be more quickly and efficiently. In other words, the transaction is likely to be smoother and more cost effective.
Second, this individual will negotiate all key points of the sale with acquiring party. These points include how and when you will be paid. Will there be an earn out? How will it be structured? Indemnification of the buyer is usually part of the agreement. How will it be structured? How much exposure will you have and for how long?
Third, your transactional attorney will be intimately involved with your banker. You may want him or her to work on the engagement letter with that banker.
Last but certainly not least, there is the matter of a non-compete agreement. You will want your transactional attorney to negotiate an agreement that is as favorable to you as possible…just in case…you develop another great idea…or…want to get back in the business at some point.
Conclusion: Your business is one of many things that define you. When it’s time to sell, that may be the only opportunity you have to realize its full and proper value, so do what you’ve done so many times in the past: hire an expert suited to the task. You’ll increase you odds of getting the best possible deal and minimizing future problems with your buyer.
Did I mention that Greater Madison has several firms and attorneys who specialize in this area?