There are many circumstances under which you might want or need to sell a business. Usually it comes down to one of the 5 Ds- Death, Disability, Divorce, Disagreement or Distress. Whatever the reason behind the sale, there’s one thing that all parties can agree on - the importance of doing it right! Following the correct procedure according to state law can help facilitate a clean break and ensure that all parties get what they want.
But when it comes to this complex and potentially sensitive process, nothing must be left to chance. You should hire and consult with a business attorney who has a proven track record of success in business law. They can help ensure that the business sale goes smoothly.
How Do You Sell a Business in Washington, Idaho or Montana?
When you are ready to sell a business in the states of Washington, Idaho or Montana you’ll likely follow a protocol like these steps:
Get the Business Assessed
In order to sell, you first need to know the value of the business and its constituent assets. Even if you have a pretty good idea of the business’ worth, an official assessment is strongly recommended to help you negotiate the best possible price.
Gather Your Business Records
A full report needs to be prepared detailing records of all transactions. These records must include account managers, vendors, service providers and everything else pertaining to the business. Virtual copies work well in most cases but there are some items for which the state government will require originals, like deeds.
Prepare a Business Sale Agreement
A Business Sale Agreement is standard practice in most states. It should provide all the information needed to transfer ownership of the business. The United States Small Business Administration (SBA) requires a wealth of information including (but not limited to) the business’ assets, purchase price, payment terms and in some cases a covenant not to compete.
Why Should You Hire a Business Lawyer to Handle the Sale of Your Business?
As you can see, the act of selling a business can be a legally complex procedure and failing to do it legally can leave all parties more vulnerable. With everything from the distribution to assets to the handling of debts, management of tax records, and the creation and negotiation of contracts to consider, there’s a lot that can go wrong without sufficient knowledge of business and corporate law.
While you don’t technically have to hire a business attorney to handle the sale of your business you run a significant risk if you don’t. An experienced business attorney can make the whole experience much easier and more palatable. An attorney can also help with negotiations, ensure that state and federal legal requirements are met, handle filings, and much more.
Do You Need to Sell Your Business? Get in Touch With Us Today!
Trust Brian J Bean of Charles Bean & Associates PLLC to help facilitate a smooth business sale in Washington, Idaho or Montana. With 40 years of experience and a proven track record of success in business law, you won’t find an attorney who works harder for you.
Get in touch with us today to arrange a free consultation!
About Brian J. Bean
Brian is a business, real estate and corporate attorney. His previous legal experience includes being corporate counsel for an Avista Utilities subsidiary, Ecova Inc. He has extensive experience guiding both large and small companies through strategic business and legal decisions, corporate formalities, negotiations and disputes. He is similarly proficient in real estate law, including, but not limited to commercial/residential purchase and sales, title actions, foreclosures, easements and boundary disputes. Brian prides himself in partnering with his clients to help them achieve their goals and objectives. This means better attorney communication, being cost conscious, thinking outside the traditional attorney-client box and investing in his clients for long-term relationship.
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