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Managing The Sale
the conclusion
Not often is there all cash at the conclusion
You should anticipate receiving many bids as a seller, each with a unique company selling structure. Making a choice that you’ll be happy with for many years to come requires knowing how to weigh the benefits and drawbacks of the various structures.
We work with our customers to negotiate and choose the best offer from the many purchasers who are likely to confirm their interest in the company, since most bids won’t be “all cash at close.”
A stock sale may also be suggested, however most proposals will be for the acquisition of the company’s assets. This will depend on how big your firm is and what kinds of agreements you have in place. Both have distinct responsibilities with regard to liabilities and tax implications.
Own Company
Personal Company
Additionally, company-owned assets like a car, computer, or mobile phone may be used for personal purposes. Disambiguating the post-closing status of these company-owned assets helps to minimize potential misunderstandings.
Key components of due diligence will also need to be assessed and negotiated. Selling professionals who already have a full-time job managing the business on a daily basis have worries about knowing what is expected of them, what is customary, and how much time it will take to provide the needed information.
Furthermore, it’s crucial to talk about non-compete clauses in order to ensure that you may continue working after the sale closes if you don’t want to retire.
Offers that include cash at closing, a seller note, an earnout contingent payment, a portion kept in escrow, and maybe shares in the new company the buyer is forming are not unusual. Additionally, you could be weighing the trade-off between a contract for work and the possibility of a price rise for the purchase.
Adjustments for cash, inventory, accounts receivable, pre-paid costs, and taxes are also common during due diligence. It will be less common to have “unexpected negotiations” after doing due diligence if you are aware of the standard modifications and how they are determined beforehand.
We will assist you in weighing your options and selecting the optimal solution for your present and future financial and lifestyle demands by collaborating with your lawyer, CPA, and financial advisor as a team.
Our ability to negotiate the best deal structures for our clients comes from experience and the ability to collaborate well with your lawyer, CPA, and other experts.