The process of buying and selling a business usually breaks down into five steps and considerations.
First, the seller and buyer of the business need to reach an agreement. Second, both the seller and the buyer secure third-party professionals to assist them. Third, a purchase agreement is prepared. Fourth, the seller and the buyer of the business need to ensure that the details of the agreement are accurate. Finally, there’s a closing.
Like almost anything, the more practice someone has at doing something, the easier it is to replicate that experience the next time. However, most people either sell or buy a business only a few times in life, if at all. The process of buying or selling a business typically breaks out into five major steps and considerations. Steps one and step two can occur in either sequence.
First, the seller and the buyer need to reach an agreement in principle. This means that the seller and the buyer generally agree that they want a transfer of business ownership sometime in the future along with a rough idea of approximately how much money will change hands and what aspects of the business will be included in the transaction. I often refer to this as the “handshake agreement.”
Read more about the process of buying and selling a business in Lee’s article in the Lima News here: Legal-Ease: What should I be ready for in selling or buying a business?
Source: LimaOhio.com, “Legal-Ease: What should I be ready for in selling or buying a business?” by Lee R. Schroeder, August 25, 2018
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.