[...]... that there will be no slip-ups or delays when the time comes to turn over the business to the buyer 5 Closing the Deal 3 Preparing a Sales Agreement Parts 3 and 4 are the heart of the book They show how to tailor your own sales agreement and the other legal documents that you’ll need to transfer your business to its new owner These are not cookie-cutter documents They must be fine-tuned to fit the needs... needs of you and the buyer—and these chapters show you how Part 3 (Chapter 12-18) focuses on the sales agreement the crucial document that you prepare and sign after you and the buyer agree on the price, terms, and legal structure of the sale The sales agreement ties together all the sale terms Whoever prepares the first draft—you, the buyer, or a lawyer—you need to understand the legal consequences... where you keep the lighting store and the other owners keep the contracting business Then, you’ll be free to apply your ideas to build the profitability of the store, with the idea of selling it within the next two years This would neatly sidestep the unsavory prospect of trying to sell a business over the objections of reluctant co-owners Or suppose you and the wife of your recently divorced co-owner (who,... delay the sale Instead, consider pulling your restaurant off the market and eking out a small profit for a few years until the technology sector revives and your bistro again has a line out the door E If You Need to Leave the Business, But the Time Isn’t Right to Sell In some situations, you may realize that your wish to sell your business quickly and move on with your life is in conflict with your. .. of legal forms and a CD-ROM so that you can tailor the sales agreement and other legal documents to fit your particular sale Here’s a brief overview 1 Overview of the Process The first six chapters explain the entire sale process, so you’ll know what to expect You’ll learn how to: • decide whether or not to sell • time your sale • prepare for the practical and legal steps involved in successfully selling... either reposition your business or move to sell it as quickly as possible 5 The Health of Your Business If your business is solidly profitable and likely to be more so in the future, chances are it will be reasonably easy to sell whenever you decide to make the move And this is especially likely to be true if yours is in a growing field in which small enterprises are 1/ 1 0 SELL YOUR BUSINESS: THE STEP-BY-STEP. .. Are Many Legal Routes to Staying Involved 1/11 G Protecting Your Future Ability to Earn a Living 1/11 1/ 2 SELL YOUR BUSINESS: THE STEP-BY-STEP LEGAL GUIDE If you’ve already decided to sell your business, you’re probably anxious to get on with the job That’s fine Skim or skip this chapter and move on to Chapter 2 L ike many other entrepreneurs, you may be ambivalent about giving up your business...3 The Key Legal Issues in Selling Your Business A Take Presale Legal Protections 3/2 B Understand the Differences Between Selling the Business Entity or Just Its Assets 3/3 C Be Clear on What You’ll Sell and What You’ll Keep 3/4 D Understand the Transfer of Intellectual Property 3/5 E Build in Legal Protections If the Buyer Stops Paying 3/6 F Assure Your Ability... 2 SELL YOUR BUSINESS: THE STEP-BY-STEP LEGAL GUIDE T hrough hard work, ingenuity, and possibly a bit of good luck, you’ve built a viable business Now, you’re ready to sell or at least you’re thinking about it But the process may seem intimidating, and you probably have lots of legal and financial questions Whether you want to handle the whole sale yourself or work with lawyers, accountants, and other... For example, frozen yogurt, video rental, pet 1/ 6 SELL YOUR BUSINESS: THE STEP-BY-STEP LEGAL GUIDE food, and nail care shops all have had their moment as the latest, greatest thing But today, if the hot action in your area is in coffee houses or gourmet sandwich shops, it may be hard to sell a frozen yogurt business, even one that makes a small profit The point is that when a once trendy business goes . law, and the author of Nolo’s Legal Guide for Starting & Running a Small Business, The Employer’s Legal Handbook, and How to Get Your Business on the Web. His monthly column, The Legal Advisor,. and Other Important Sales Documents I/3 5. Closing the Deal I/3 C. Working Efficiently with Lawyers, Accountants, and Other Professionals I/3 I/2 SELL YOUR BUSINESS: THE STEP-BY-STEP LEGAL GUIDE T hrough. involved in successfully selling your business • analyze the tax consequences of selling your business USING THIS BOOK TO SELL YOUR BUSINESS I/3 • set a realistic price range for your business, and •