Owning a business can be a lot of work, so if you want to sell a portion of that business, it’s understandable. Selling a business isn’t as easy as throwing an ad in the local classifieds, but it doesn’t have to be difficult, either. Working with a business lawyer is one of the most effective ways to ensure the process runs smoothly. What should you do when you want to sell a portion of your business?
Speak With a Lawyer
Before you do anything, you should at least have a conversation with a business lawyer. Chances are, even if you have thought about everything, something isn’t going to be just right. You want a lawyer to look over your plan to determine where you need to make some changes in order to obtain the best benefit. Your lawyer might recommend you raise or lower your asking price. He or she could recommend that you add a certain clause to the purchase agreement. There are several other action items your lawyer might recommend, and that could all just be in your initial conversation.
Understand Your Options
Depending on the size of your company, you might have multiple options when it comes to selling just a portion. Two of those options include:
- Splitting the company by percentage. In most cases, selling your company in percentages includes structuring the sale by stock shares. Also commonly referred to as recapitalization, this process is often used by someone who might want to retire, but isn’t entirely sure yet. The buyer generally has most of the control over the company after this type of sale, but the seller still has a say in how it is run.
- Splitting the company by division. Many companies have different divisions or units within the structure of the business. There might be an advantage of selling just one division. For example, a business might have a division that works with overseas sales, while another division works locally. Selling the overseas portion could ease the workload of the local division or increase the revenue altogether.
Be Sure About Your Decision
You should never go ahead with a sale you’re not entirely sure about. Sometimes there might be some hesitation, but if yours goes deeper than just a slight hesitation, you might want to sit on it for a little while before proceeding.
As you can see, selling a portion of your business is a big decision, but a lawyer can help. Get started today by contacting a business lawyer, such as a business law lawyer from Bott & Associates, LTD., at your next earliest convenience.