Mergers and Acquisitions: preparing your business or company for sale!

Understanding tax, corporate, business, employment and intellectual property law principles is crucial to positioning your business for sale and getting the greatest return on your investment.  Preparing a business or company for sale to get the highest price starts with the owners and management doing the following:

1) contract review and modification of agreements (employment agreement for key officers, key supply agreements, key licensing agreements, shareholder or membership agreements, key sales agreements, key distribution agreements etc…);

2) considering a good strategy for addressing management and employee concerns under new management (may require stay on bonuses, modifications to employment benefits and compensation plans, etc…);

3) reviewing and recording intellectual property rights, including, copyright, trademarks, trade secrets, and/or Patents (it may require new filings, recording assignments, creation of a holding company, etc…);

4)  consulting and working with a tax attorney or CPA regarding (reinvestment of sales proceeds, structuring purchase payment plans, an asset or stock sale to take advantage of tax implications, etc…);

5) retirement or reinvestment planning for owners or owner/operators that are exiting the business or company; and

6) resolving outstanding claims by lenders, creditors, employees, competitors, partners, suppliers, or intellectual property owners to allow for proper warranties and representations to potential purchasers.

These are just some of the considerations in getting the most value and return out of your hard work in developing a business or company.  Working with a good team of professionals-lawyers, accountants, bankers, and retirement professionals can be a vital part of the strategy for getting the maximum return out of your business or company.

If you have any concerns or questions, regarding preparing your business or company for sale, selling your business or company, and/or buying a business or company, then feel free to contact us.

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