Imagine you live in a Tiny Home, but you decided to buy a ranch out in the country instead. Because you are busy with work, you decide to hire a realtor to sell your tiny home for you.
However, the realtor you hired only has experience selling mansions and ends up struggling to find a buyer, leaving you in limbo.
This concept also transfers to selling a business.
When selling a business, it is expected the person facilitating the sale has the expertise get a deal done. Businesses looking to sell typically hire a lawyer early in the process, so it is critical for the lawyer you hire to have experience in this practice area.
Hiring a lawyer with an expertise in M&A transactions offers specific advantages to a someone looking to sell their business for a variety of reasons.
They Understand The Law
This seems an obvious statement when considering an attorney, but a lawyer who practices in mergers and transactions will know the specific statutes that apply much better than an attorney that say primarily practices personal injury.
The lawyer you select should be knowledgeable about profits, debts, tax records, sales contracts, etc. Their expertise in this area should give the seller more confidence because specific details of the transaction will not be overlooked.
An experienced M&A attorney will not let a business owner take a deal just because of money but because the written contract is aligned with the law and follows best business practices.
In certain cases, selling a business may lead to legal issues and the seller will have to go to court. Hiring a business lawyer from the beginning of the process can help in court. Representing one in court will not only be someone who understands the law, but who understands the business practices one is litigating over.
Selling A Business Isn’t Always A Choice
Selling a business is not always an anticipated choice; sometimes it is required. For example, many businesses are currently closing or looking to sell because of the unexpected impact of COVID-19.
Because selling a business is not always anticipated, there can be unforeseen circumstances involved, such as debt and/or profit loss.
These situations can require a long-term plan for the future of a business, which often require a skilled M&A attorney.
Proper Documentation Through The Transaction Process
Although this may seem obvious, it is important to hire a business lawyer for thorough documentation purposes.
The sale of your business should be documented from beginning to end, and a business lawyer can help maintain records throughout the sale process. Ensuring proper documentation of accounting matters, any intellectual property, etc., is critical when selling a business.