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Stamford, CT commercial and business law attorney

Deciding to sell your business is not an easy decision to make, since it has likely been integral to your livelihood. You have probably put a tremendous amount of your own money, time, and energy into growing your business, and parting with it may be challenging. When selling a business, whether big or small, it is essential that you avoid mistakes that can reduce the profit you obtain from the sale and cause major financial and legal headaches. Rushing a sale or selling without fully investigating your options may cause you to miss out on better opportunities. However, waiting too long to sell can also spell disaster. Whatever your reasons for selling, it is important to discuss your plans with an experienced business law attorney so that you can receive accurate legal guidance personalized to your unique needs.

Start Preparing Sooner Rather Than Later

Experts suggest that business owners should start preparing for a business sale at least several years before planning to close the deal. This gives you time to ensure that selling is truly what you want and avoid the dreaded feeling of “seller’s remorse.” Preparing well in advance also allows you to gather the financial data a conscientious buyer will want to evaluate. Typically, buyers want to look at up to five years’ worth of tax returns, profit and loss statements, bank statements, supplier and vendor contracts, and other relevant documentation.

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Darien business succession attorney

Business succession planning is a crucial step for any business owner. You have probably put an enormous amount of time and effort into your company, and you want the business to continue to succeed after your retirement or death. A carefully designed succession plan gives you the best chances possible of avoiding problems during an ownership transfer. One of the most important considerations when building a comprehensive business succession plan is who you should choose as the new owner.

Selling Your Business to a Co-Owner or Employee

If you share your business with one or more partners, a natural successor may be one of your co-owners. Some partnerships choose to draft an agreement that permits the remaining owner to purchase a disabled or deceased owner’s business interests from his or her next of kin. This option can be especially advantageous if an owner unexpected passes away or becomes incapacitated through a major accident or illness. However, this option also requires co-owners to be prepared to buy out a partner's shares at a moment’s notice.

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Norwalk business succession plan attorney

For a lot of business owners, their professional and personal lives can become intertwined. This is especially true for small business owners. Many of these businesses were founded by the current owner, while others may have been passed down through generations. Regardless of how a business was formulated, it is important to prepare for the next step by creating a succession plan. Business owners cannot run their business forever and must prepare for a future to avoid losing the business altogether. Delegating the livelihood you have created to another person can be difficult, but with the correct legal assistance, you can ensure that your business lands in the appropriate hands.

Who Can Take Over My Business?

There are five common ways in which a business owner transfers ownership of his or her company. Many business owners will choose a person with whom they are familiar to take on their business relations. This can include a current co-owner, a family member or heir, or a key employee who they think would best run the company. On the other hand, some owners wish to have an outside party, such as an entrepreneur, come in to bring new ideas to the table and avoid familial conflicts that can come along with passing your business to a relative. Businesses that have multiple owners can sell their ownership rights back to the overarching company. 

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