Selling a commercial enterprise represents one of the most important subtractions used to calculate not only future financial but also your legacy. Below we want to describe how despite being one in a team of specialized advisors, legal experts providing selling a business legal advice can unlock hidden value throughout the business sale process. Through helping you navigate complex areas of law and regulation, they aim primarily at reducing risk and structuring your deal for maximum return.
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Expert Valuation and Deal Structuring
A key offering of lawyers is the ability to help value and structure a potential sale. Lawyers explain the different types of company sale structures, like asset sales, stock sales and mergers. Each structure carries its own implications in terms of taxes, liability and the potential to continue operations.
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Comprehensive Due Diligence
The vetting process that takes place buy side is arguably the most critical phase of the M&A sale deal, and ultimately where a having good legal counsel around for this step will save you time downstream. During the due diligence process, your lawyers work side by side with you to gather all pertinent documents (like financials statements, agreements and records) needed for review. They also highlight any legal issues that may become a concern for the transaction. Good legal clouds are addressing these issues before they become problems which could substantially slow the process and reduce its potential price tag.
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Negotiating and Drafting Agreements
The drafting and negotiation of the sale agreement is one of the most crucial elements to a transaction. Legal will draft and review significant documentation including the LOI, PA, disclosure schedules. They make sure these papers adequately reflect the terms of your deal, and that they protect you. The lawyers also negotiate on your behalf to obtain favorable provisions with respect to price adjustments, indemnification clauses and representations & warranties. They negotiate to bring the seller additional value from a transaction, allow any outstanding issues regarding purchase.
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Ensuring Legal Compliance
Smooth transactions depend on compliance with any legal and regulatory requirements. A sale may require the assistance of a legal counsel to comply with all laws, including securities regulations (in each jurisdiction holding either person), and antitrust/industry-specific rules. They do the necessary filings and get regulatory approvals to keep things from getting bogged down or tied up by legal technicalities that might scuttle a sale.
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Managing Post-Sale Issues
Legal counsel post-closing Lawyers help organize post-sale activities, such as resolving any disputes that arise and ensuring all obligations under the sale agreement are met. Typically these folks are part of a transition office that is responsible for moving contracts, IP and employees to the buyer-seller so both parties seamlessly integrate.
Their skills in valuation, deal structuring, selling a business legal advice, due diligence, contract negotiation and drafting, regulatory compliance as well as post-sale administration are essential to guarantee the transition proceeds without a hitch while meeting your objectives. It will mean you enjoy a sale which realizes the full potential of your business and that all steps are taken to protect your position during, after and following on from the transaction.