Create a detailed description of the terms of the sale in order to protect yourself and your assets.
When you decide to sell your business, the most important document is the sales agreement.
This agreement must be accurate and contain all terms of the purchase; therefore, your attorney should draft or, at the very least, review the agreement prior to the sale of your business. The U.S. Small Business Administration suggests the following checklist of items that should be included in your sales agreement:
- Names of seller, buyer and business
- Background information
- Assets being sold
- Purchase price and Allocation of Assets
- Non-Compete Agreement
- Any adjustments to be made
- Terms of the Agreement and payment terms
- List of inventory included in the sale
- Any representation and warranties of the seller and buyer
- Explanation of what access the buyer has to any business information
- Explanation of how the business will be run prior to closing
- Fees, including brokers' fees
- Date of closing
The SBA provides additional information about the process of stepping away from your business.