Important issues when selling a business

CPA and Tax Attorney Peter Pappas suggests 10 important issues to consider when selling you business:

1. Asset or Stock Sale
2. Employee Retention
3. Vendor Relationships
4. Non-Compete Agreement
5. Indemnification and Hold Harmless Clauses
6. Consulting Agreement
7. Allocation of Sales Price
8. Unpaid States Sales Taxes
9. Owner Versus Third Party Financing
10. Intangible Assets

He further lists the basic legal documents required in a typical asset sale transaction:

• Asset Sale and Purchase Agreement
• Bill of Sale
• Promissory Note (if partly financed by seller)
• Non-Competition Agreement
• Employment/Consultant Agreement
• Security Agreement
• Lease assignment or sublet agreement

In closing, he advises: "Finally, you should never try to sell your business or buy a business without first consulting with an experienced business transaction lawyer."