“Should I sell my business?” Perhaps, the time may come to consider selling. However, the process can be complex, requiring thorough preparation to ensure a smooth experience. Preparing the business for sale not only establishes a strong foundation for negotiations but also enhances its attractiveness to potential buyers.

1. Assemble a Team: Before selling, it’s crucial to assemble a transaction team including:
   • Management Team: Key executives and officers who will oversee various aspects of the sale process.
   • Legal Advisors: Negotiate legal terms, draft documents, and manage legal issues.
   • Financial Advisors: Help identify buyers, market the business, and manage the sale process.
   • Accounting & Tax Advisors: Assist with financial preparation, resolve accounting issues, and ensure tax efficiency.
2. Search for Well-Qualified Buyers: Consider options such as sourcing individual buyers or conducting an auction, with the assistance of advisors to maximize sale price. Ensure confidentiality during the marketing process and evaluate buyers based on various factors beyond the purchase price.
3. Conduct Due Diligence on the Company: Thorough due diligence helps identify and resolve potential issues that may impact the sale or value of the company. Key information includes financial records, contracts, intellectual property, employment agreements, regulatory matters, and legal claims.
4. Get Organized: Create a well-organized data room with the assistance of financial and legal advisors. The data room should be easily navigable and contain all necessary documents for potential buyers to review.

Key Takeaways:

• Strategic Preparation: Evaluate the business’s status, assemble necessary documentation, and ensure systems are well-documented.
• Assemble a Team: Gather a reliable team of advisors, including legal, financial, and accounting professionals.
• Due Diligence Readiness: Prepare for buyer scrutiny by organizing a data room and addressing any gaps in corporate records.
• Market Analysis: Understand market conditions and industry benchmarks to set a realistic price and negotiate terms effectively.

Prepared by Sam McMechan, of McMechan Law, www.mcmechanlaw.com

Summarized from an article in Lexology: Morgan, Lewis & Bockius LLP – Brian P. Slough, Gregory (G.T.) Harris and Andrew Hamilton