Here are some important steps to consider after the closing of your business sale: Renew UCC Liens: If you’ve financed the sale of your business and filed a UCC lien to protect your interests, make sure to keep track of its expiration date. UCC liens must be periodically renewed to remain valid. Maintain a Relationship […]
While often overlooked, the phase when business ownership shifts to the buyer is a pivotal moment in the sales transaction. In the worst-case scenarios, inadequate training can lead to buyer failure, potentially resulting in the closure of the business and substantial financial losses. Conversely, in the best-case scenarios, a seamless transition paves the way for
The buyer has completed their due diligence, and you’ve meticulously done yours. The terms of the transaction have been broadly agreed upon, including the price. Now, let’s talk about the closing. You’ve come this far, and we’re well-prepared. No need to hold my beer… While a flawless closing may be elusive, we can certainly get
What is a Definitive Purchase Agreement (DPA)? A Definitive Purchase Agreement, or DPA, serves as the final contract that officially transfers ownership of a business and its assets. The term “definitive” is used because it signifies that this agreement is the ultimate and conclusive one executed between the involved parties. It supersedes any prior agreements,
Seller’s remorse, much like buyer’s remorse, is a real phenomenon in the business world. It occurs when business owners, after making the decision to sell, begin to feel the weight of what this change entails. Some may even consider delaying or canceling the sale, often due to the anxiety that accompanies such a significant life
Executive Summary Representations and warranties, often referred to as “reps & warranties” or simply R&W, constitute legally binding commitments made by both the buyer and the seller. They form the bedrock of any purchase agreement, whether it’s a stock purchase agreement or an asset purchase agreement. Below, you’ll find a concise overview of a typical
The Importance of Preparing for Due Diligence Conducting due diligence represents the buyer’s comprehensive examination of every facet of your business. This process encompasses three key areas: Financial Due Diligence Legal Due Diligence Operational Due Diligence Neglecting adequate preparation for due diligence can potentially result in significant expenses and prolonged timelines. Nevertheless, the advantages of
Once you’ve accepted an offer or a letter of intent (LOI) for your business, the buyer will initiate due diligence. In essence, due diligence is the meticulous process of gathering and scrutinizing information. Its purpose? To guide both parties in making an informed decision about proceeding with the business transaction. Typically, this phase unfolds over
Introduction Over the course of many decades, astute buyers have recognized the immense value in commissioning professionals to conduct a rigorous Quality of Earnings (QoE) analysis of target companies slated for acquisition. This invaluable tool not only offers buyers peace of mind but also forms the bedrock upon which they determine the fairness of the
Amidst a string of seemingly seamless business transactions, even the most assured buyer may experience moments of uncertainty. These doubts often revolve around the alignment of certain business aspects with regulatory norms and the specter of potential fraudulent activities. To address these concerns and instill a sense of assurance, buyers occasionally opt for a strategic
