Sales of Businesses
Connecticut Business Sales Lawyers — Kocian Law Group
Selling a business can be just as complicated as buying a business. You want to get the best deal possible, but you also want the sale to transpire quickly.
Kocian Law Group can help you write and negotiate contracts for the sale of a business. We will look out for your interests to ensure a fair sale.
Selling a business poses several legal issues. Potential buyers may want to see confidential information, including your business’s books and records, as part of the buyer’s “due diligence.”
Responding to a buyer’s due diligence is a necessary part of selling a business, but it also leaves you in a vulnerable position if the buyer backs out of the sale with access to your confidential business information. A non-disclosure agreement will keep a potential buyer from using intimate information about your company for themselves, whether or not they buy the business. The non-disclosure agreement can also prevent a potential buyer from hiring your employees for a limited amount of time, protecting you from losing employees if you don’t sell your business to the buyer. Kocian Law Group can create a non-disclosure agreement that provides these protections.
Kocian Law Group can also help draft a “letter of intent” that delineates the material terms of the sale. When a letter of intent is prepared by your attorney, it is written to protect your interests and rights. It is also typically written in a manner that permits final revisions when all the material information becomes available.
An agreement to sell a business may also address earn-out. Earn-out is a part of purchase price of the business that is paid only if the business meets agreed-upon profits after the sale. If the business does not meet the target profits, earn-out may not be paid, or it may be paid at a reduced rate. Earn-out can be a contentious legal issue; it can be difficult to come to an agreement, and arguments about when and how much payment is due are common. If you wish to include an earn-out in your sale of a business, consulting an experienced attorney can help.
Kocian Law Group has experience handling complicated transactions and negotiations. We work hard to help you make sure your business transaction is smooth.