Do I Need a Lawyer to Sell My Business in Arizona?

Selling a Business in AZ

Are you considering selling your company? You’re probably wondering, “Do I need a lawyer to sell my business?”

As a business lawyer in Phoenix, the Anthony Law Group can help broker the deal.

How To Sell Your Business

The business sale process can feel complicated, but the vast majority of small business sales use the following steps.

Decide To Sell

Do not decide to sell your business too quickly or without forethought. The entire process may take up to 12 months. The most common reasons people decide to sell their company include:

  • They are ready to retire or feel burnt out.
  • They have a financial crisis and need the money.
  • Health issues prevent them from running the company.
  • They want to use the money to open a new company.
  • Legal troubles make running the business unfeasible.

Before you sell your existing business, consider your emotional, physical, and financial state, as well as what is most beneficial to your family and your goals in life.

Determine Valuation

You cannot sell your business if you do not know what it is worth. This is the first step where a small business lawyer can give you an advantage.

They can work with other professionals to determine the worth of the organization using criteria such as:

  • The location and size of the business
  • The company’s operating history
  • The growth rate, profitability, and debt of the company

Create a Confidential Business Review

A potential buyer should know all the important facts and figures of your organization before they buy. A CBR financial statement and other documents give the buyer a thorough understanding of how your business operates.

To prepare the CBR, gather the following documents:

  • Current financial statements and those from the last three years
  • A list of assets and real property, including furniture, fixtures, and equipment, as well as their market value
  • Approximate value of your on-hand inventory

Locate Buyers

Finding qualified and serious buyers is one of the most stressful parts of selling a business, but a good business broker can find them more easily. Business brokers maintain good relationships with other local and regional industry professionals and can proactively reach out to them.

Good candidates for your business succession include financial investors looking for growth opportunities, current employees, or another business owner who wants to expand.

Negotiate Price

Even after you have received a valuation, you can still negotiate the price of your asset sale with your potential buyer. You have worked hard to grow your company and may have an emotional bias.

An experienced business attorney can advocate for your desired selling price, likely increasing your sale price, which is well worth any legal fees you will pay. Negotiation includes the common aspects of sales contracts, like payment terms, how long of a transition the business requires, and legal aspects.

Having a lawyer’s experience throughout this complicated process can increase the chances of selling your business entity for the price and conditions you want. Once you both agree on the price for business ownership, you can sign a business purchase agreement drafted by your business lawyer.

Wait for Due Diligence

If you are wondering, “Do I need a lawyer to sell my business?” consider the benefits of having legal counsel during the due diligence process. Business lawyers can help answer the buyer’s questions.

Due diligence refers to the process a buyer undergoes to obtain a thorough knowledge of your company and verify all your claims. They will use a good lawyer to look through all your legal documents, identify any risks involved, and assess any other common legal issues, such as fraud.

A business lawyer can help the buyer complete the process within two to four weeks, but the length may vary depending on whether complications arise or other concerns within your specific selling process.

Close and Transfer Business Ownership

With due diligence complete, you can set a closing date to sell your business. Most businesses can close soon after due diligence, and you may even include the date within the business contract.

You want an experienced law firm to help you through closing, as it requires several important documents, and other legal issues may arise. By involving an attorney, both parties can complete the sale with little to no issues.

Transition and Train

Most sales include a period in which you will train the new business owner. This part of the sale usually requires a two-to-four-week commitment from you, but you most likely will not need to get an attorney involved.

Benefits of Hiring a Business Attorney in Arizona

When you are selling a business, you gain several benefits from partnering with a business lawyer.

Navigating Business Law

A qualified lawyer can help you navigate a complex network of laws that arise in the business selling process. When you work with a law firm, you likely work with a business lawyer and a team of other professionals that reduce the risks associated with selling a business.

Arizona has several guidelines that dictate how you sell a business, and trying to interpret these laws without a lawyer can significantly slow down the process or lead to costly mistakes.

Faster Process

An attorney can help speed up the process of selling your business. While the average time it takes to sell a business is between six and 12 months, forgoing a business lawyer can increase that time, especially if you can’t find a buyer.

Since they are highly experienced, a good attorney can prevent the sale from taking longer than normal.

Avoiding Mistakes

If you are selling your business without help, you leave yourself vulnerable to common mistakes along the way. When you partner with an experienced broker or attorney, you can sell a business without falling prey to expensive missteps.

Contact Anthony Law Group for Representation as Your Business Broker

Now you know the answer to, “Do I need a lawyer to sell my business?” Anthony Law Group has experience selling businesses, and our attorneys can advocate for you during the sale.

From business partnership disputes to understanding the legalities of a company hiring process, we help small businesses navigate complicated laws.

To speak with an attorney or team member about your potential sale, call 602-362-2396 today.

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Anthony Law Group

Anthony Law Group