as your broker will allow you to take advantage of some key benefits
you get from hiring a reputable broker.
They allow you to run your business while it is being marketed
for sale
They can be a good buffer between you and the buyer
They can handle the flow of documentation
They have done it before and have likely dealt with most challenges
that can arise.
Should you decide to engage a broker, these are some things
you need to consider:
Get referrals from your network. Speak with your CPA, attorney,
and business associates and see if they can recommend someone
to you.
There are two areas where it is strongly suggested that you consult
with an attorney when selling a business. The first instance is
when you prepare a circular or prospectus summarizing your business
for potential buyers, and the second is when you prepare a purchase
and sales agreement.
While you may have operated your business successfully year after
year, a new buyer without your particular skills, expertise, or
personality may easily run into problems. If the business turns
out to be less successful or easy to run than the buyer anticipated,
he or she may assume that the business was fraudulently represented.
One way to reduce the risk of litigation in this is to have an attorney
review your circular or prospectus. The attorney will undoubtedly
advise you to avoid projecting future sales or profits or at least
be extremely careful when doing so.
Even if you are selling a very small business, you should have your
attorney review, if not actually prepare, the purchase and sales
agreement. Buying and selling businesses is often much more complex
than, for example, making real estate transactions.
