Getting your business ready for sale

A guide to the legal steps you can take ahead of time to help ensure a smooth process and a profitable sale

As a business owner, you've spent years establishing your company. You've managed it through challenges and built it into the successful operation it is today. Selling can be a tough decision, and if you are considering a sale, now is the time to arm yourself with the facts to ensure it's as smooth, equitable,
and profitable as possible.

The first thing to know is that selling can be a lengthy process, and it does require significant effort on the part of the seller. In fact, a recently released analysis of 9,000 transactions in the US showed that, on average, it takes 6.8 months to sell a business. Why so long? Not surprisingly, potential buyers want to undertake extensive due diligence to properly assess what exactly it is they're buying.

And that's just the sale process itself. In fact, it can take years to get your business ready to put on the market. That's where this guide comes in. It will help you prepare your business for the due diligence it will need to withstand to achieve the sale price your years of work have earned.
It will take time, but it's time well spent. If you take the right steps and prepare the necessary documentation, you can speed up the transaction, reduce frustration with the process, leave more time to focus on the continued operations of your business and increase the ultimate sale price. You'll also be ready to take advantage of any unexpected offers that may come your way.

To increase your chances of success, try to anticipate the buyer's concerns or needs. In the buyer's eyes, the more organized your company appears, the greater the comfort level. And your ability to provide a buyer with an indexed archive of information on your business will limit the potential for problems during the due diligence period.

This guide outlines the things you need to consider from a legal standpoint as you prepare for the future sale of your business. Of course each unique business has nuances and details that will require professional opinions and advice. However, there is much you can do ahead of progressing with a sale to ensure that, when you do decide to move forward, you're thoroughly prepared.

In this guide you will find information on:

• Getting your company records ready
• Formalizing your external relationships with contracts
• Updating your employee contracts
• IP considerations when selling your business
• Preparing for family business succession
• Ensuring your shareholders' agreement is up to date
• Understanding the nuances of selling your franchise
• Restructuring your business for tax efficiency
• Selecting a business broker
• A few other things to think about
• Working with Kelly Santini LLP

The business law lawyers at Kelly Santini LLP can assist you with each of the pre-sale actions and the ultimate sale of your business.