Running a business can be a rewarding experience, but at one point or another it will be time to sell it. People sell their businesses for a variety of reasons, including capitalizing on value, poor performance, retirement, and finding new opportunities. Handing over control of the business to a third party, internal management group, or a partner are all viable succession plans for many business owners. If you’ve come to the conclusion that you want to sell your business for any of these reasons, read up on how to successfully complete an asset sale.
What Is an Asset Sale?
Selling your business can be done in two ways: through an asset sale or through a share sale. The process of an asset sale includes selling assets—tangible or intangible—that your business owns. Tangible assets include inventory and equipment. Intangible assets include a trademark or the goodwill of your business. You can choose to sell certain assets and keep others, to a certain degree.
The Steps of an Asset Sale
The first step to selling your assets is locating a buyer. Once you have done this, you will likely agree to price and major terms surrounding the deal. When you’ve come to this informal agreement, it is time to conduct the sale in a formal manner. You want to make sure you follow all relevant regulations and sound advice when selling business assets. The major steps to completing the sale of your business assets are as follows:
An asset sale is a big step for any business owner. You will want to ensure all of the details are hashed out and that your interests are taken care of by your lawyers. Completing an asset sale should be a mutually beneficial process that leaves both parties satisfied. When you follow sound advice and conduct the sale in a proper manner, your assets can be sold successfully.Legal Disclaimer
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.