Selling a business requires forethought to pull off correctly. Curious about how to sell a business in Florida? Familiarize yourself with these three documents.
For many Florida entrepreneurs, selling their business is the endgame that allows them to retire. For others, it’s the first step toward starting their next venture. No matter what you plan to do with the proceeds from the sale, the transaction needs to go smoothly from start to finish if you want to avoid a massive headache.
Having these three documents ready will help ensure you get it right.
How to Sell a Business in Florida: 3 Documents to Have Ready
The Engagement Letter
When you sell a business in Florida, you are entering into a relationship with your buyer. An engagement letter lays out what is expected from each of you during the process so there are no misunderstandings about what your responsibilities are.
Why is this document important? In some industries, selling a business to an interested buyer can last years. You should also be sure to include an exclusivity clause to make sure that both parties remain loyal to the transaction.
The Non-Disclosure Agreement (NDA)
It is possible that a deal might fall through, in which case, you might be concerned that confidential information or trade secrets might be leaked. A well-crafted non-disclosure agreement will help you secure private information, whether the sale goes through or not.
Your NDA should define what is considered confidential information as well as what happens to any information if your agreement is terminated. After a prospective buyer signs the NDA, you can present them with a confidential information memorandum, which will give them more information about the business to help them decide whether they want to buy your business.
If the buyer is interested, they will present you with a letter of intent, which indicates they are serious about making an offer to buy your business.
Get personalized advice on how to sell a business in Florida from one of our expert attorneys.
The Purchase Agreement
After you receive an offer from a buyer, it’s time to draft a purchase agreement. This document is binding, so you should consult with an experienced attorney to make sure that you don’t leave anything out. This document lays out all of the terms and negotiations that you and the buyer have gone through during the sale. It contains all necessary definitions of key terms concerning the transaction as well as other items within contract law.
Your attorney will walk you through the process to ensure you are protected and get the best deal possible for your situation.
Talk to an Experienced Business Transaction Attorney to Get Started
A short article like this cannot possibly give you all the information you need about selling your business. Are you thinking of selling a business? Talk to one of the attorneys at Casal & Moreno to discuss how to sell a business in Florida. We are here to help you achieve your goals.