Purchase and Sale of a Business
We can help you purchase or sell a business. If you are thinking about buying or selling all or part of a business, Jarvis Law Firm PC has experience representing either the purchaser or the seller in initial negotiations, due diligence and closing those sales.
With many baby boomers looking to retire and many millennials looking to work for themselves, there have never been more opportunities to connect with an appropriate purchaser to carry on the legacy of a mature small business for the next era.
Do you need a business broker? No. If a buyer or seller can meet one another and come to basic terms of a transaction on their own, then there is no need to retain the services of a business broker. Jarvis Law Firm PC can create all the legal documents necessary to complete the sale of most businesses. In a circumstance where either party has a desire to buy or sell a business but has not yet identified the other party a business broker can be very helpful. There are several excellent business brokers in Mobile and Baldwin County, Alabama. Jarvis Law Firm PC has successfully worked together with many local business brokers to reach the point where the parties can close the transaction.
How does a business sale typically work? Generally, a purchaser will offer to a seller a letter of intent outlining the credibility and suitability of the buyer to carry on and manage the business and the basic terms of the sale including the price and financing terms of the transaction. If an agreement can be made that is usually formalized in a contract agreed by both parties. After the contract there is usually a due diligence period whereupon the parties exchange financial information and company specific information to make sure that the exchange will in fact work after review of the detailed information of the other party. Sometimes this includes the need to disclose confidential or proprietary information. When that is necessary, it is customary for the parties to agree to nondisclosure and non-solicitation agreements. Jarvis Law Firm PC can assist with managing these documents and this process. The financing of a business sale may be all cash at closing, may be owner financed or may be financed through a lender. Often there is Small Business Administration financing available through a local bank. If there is no real estate involved in the transaction, the closing of the transaction can often occur in the office of the attorney for the buyer or the seller. When real estate is involved in the transaction, it is often a good idea to involve a title company or a law firm that offers similar closing services to close.
If the financing of a business sale includes Small Business Administration loan through a bank or other bank financing, the lending institution will have certain lending standards that must be met before closing of the transaction can occur. Jarvis Law Firm PC has experience with meetings with lenders, creating the necessary documents, and assisting the buyer or purchaser to meet those requirements so that the transaction may be completed.
If you are thinking about selling or purchasing a business, please call or text us today. We will be happy to be of service to assist you to make the business transition that is best for your next stage in life.