Is your startup ready to take the next step and join forces with a larger corporation? Are you ready to make a significant shift in your operations and hand over the reins to another owner? Selling your business is one of the most important decisions an ownership team can make, and comes with no shortage of crucial steps and factors to take into account for a successful sale. If you’re considering transferring ownership of your company or inquiring about an acquisition, below are five aspects to keep in mind to ensure everything goes according to plan. Read on to learn more!
Keep On Top Of Taxes
One of the most complicated aspects of any major business sale is the tax consequences upon sale. Without the proper plan in place, you can quickly find yourself facing a significant bill. Work closely with your financial and legal teams to draft up a plan, about selling shares or assets, that takes all factors into account in order to ensure all details are properly covered from start to finish, and to avoid significant headaches down the line.
Stay On Top Of Shares, Company Structure and More
Every business is structured uniquely, and it’s important to keep this in mind when going over the pre-emptive details of your sales process. Before you think about signing on the dotted line, you need to have a clear, objective plan as to what happens with everyone’s shares, how corporate restructuring will be handled, and more. Depending on how your shareholder’s agreement is structured, you may need to abide by specific stipulations, and will want to ensure that all parties are advised as to what steps are expected to occur moving forward.
Do Your Due Diligence
As with any major decision that affects the future of your business, it’s imperative that you do your homework prior to pulling the trigger. Have your legal team and in house advisor research potential risks, exposures, business partners as well as extensively pour over the terms and conditions of any deals that may be presented.
Be Airtight On Non-Competes And Other Stipulations
Much like your shareholder’s agreements, any business transaction that involves the selling of your company should have a clearly outlined section dedicated to handling the specifics of core details like non-competes, trademarks, and more.
Plan A Generous Transition Period
While you may be eager to move through things quickly, it’s vital to remember that large scale transactions will take time to process, and that both remaining and newly acquired staff will need time to adjust as well. With the proper succession plan in place, the transition process is much easier for everyone involved, giving you peace of mind and room to profit.
Here To Partner With You
At Paperclip Law, we know how important it is to have full confidence in your legal team. Since 2011, we’ve partnered with businesses throughout the Lower Mainland and Greater Vancouver area to act as their trusted legal counsel. Our corporate services include support for incorporation matters, disputes, as well as day to day matters. Learn more by viewing our services, or by contacting us today!