When you make the decision to sell a California business, a well-considered business sale agreement is an important part of the process. The sale of a business is typically done either as a sale of assets or a sale of the equity (e.g., stock or limited liability membership interests) in the business.
SmartAsset, an online source for personal finance, indicates that although every business sale agreement will differ and there will be some give-and-take like most buy/sell agreements, there are certain components most business sale agreements should contain.
The names of the parties involved
Your sale agreement must dictate who it applies to in a clear and concise manner. The information should be included at the very beginning of the document. The exact name and location of the business should also be specified.
The assets undergoing transfer
You also need to address what assets transfer alongside ownership of your business. The sale agreement should include physical and financial assets and also address intangible assets, such as customer databases and the like.
Liabilities your buyer assumes
Your sale agreement should also spell out any liabilities the new owner will assume once he or she takes the reins of your business. Such liabilities can include outstanding loans, unpaid taxes and similar debts.
While these are all important components to include in your business sale agreement this is far from a comprehensive list. For example, you may also want to include sections relating to contingencies, sales terms and disclosures, representations and warranties, dispute resolution, and other topics.
Enlisting the help of a commercial real estate attorney can ensure your sale agreement is solid and protects your interests.