Here are just three initial tips for business people considering selling their company:
- If your company is organized as a corporation or limited liability company, make sure that your organizational documents are up-to-date. You will have to represent that they are as part of the sale.
- If your business includes valuable copyrights, trademarks, and other intellectual property, make sure you actually own that intellectual property and are authorized to transfer it to the seller.
- Begin the deal with a term sheet . A term sheet is a document of a few pages that outlines the key elements of your deal. Think of it as a road map to closing. By completing a term sheet, the buyer and seller confirm that a deal is possible before they expend time and resources on the negotiation of a much longer purchase agreement.
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