Are You Ready for Your Business Sale Closing?

Are You Ready for Your Business Sale Closing?Whether you’re selling or buying a company, there are several concepts that should be addressed during this closing meeting to finalize the sale. You should never attend a business sale closing meeting without extended consultation prior to the meeting with your business law attorney. Your legal counsel should also attend this meeting with you.

It’s critical during this closing process that you review all required documents for accuracy. Come prepared with a checklist of what documents you already have and what documents you already need. Spend some time having your lawyer review these documents ahead of time so you’re prepared to address any inconsistencies or issues immediately. Some of the required documents you’ll need include verification of the company’s good standing, tax releases previously agreed to by the seller, and a corporate resolution officially approving the sale.

During the meeting, clarify an adjusted purchase price (changes might reference utilities and inventory up until the time of closing). Maintain a copy of the security agreement, which lists assets for security in return for the loan payment. Any landlords involved will need to concur on a lease so that all new parties are clear on the lease terms. Thoroughly review the closing/settlement sheet, which covers all the financial pieces of the sale.

There are several other issues that might come up depending on the nature of the company. This could include patents, copyrights, and trademarks connected to the business. If you want a fresh start as the new owner of this business, you may also want to have a covenant not to compete signed by the previous owner to limit possible competition against your venture.

As is evidence above, business sales are extremely complex and have many details in play. Purchasing or selling a business can be an exciting process, but it’s necessary for both individuals involved to retain the services of an Illinois business law attorney.