- May 26, 2017
- Posted by: admin
- Category: Exit Planning, Sell Your Business
Selling your business is a complex process, and there are tons of things to remember and pitfalls to avoid. It’s important to approach this process in an organized fashion. Read our handy checklist for selling a Las Vegas business so you can make sure you avoid common pitfalls, and better understand how to ease the overall transition.
Pre-Closing Checklist for Selling a Business in Las Vegas
Before you reach closing day, you’ll want to make sure that everything has been covered, and that you and your broker have taken all the important steps. This checklist for selling a Las Vegas business should include the following:
- Schedule the closing date. Try to set it up in the morning so you have plenty of time
- Finalize the agreed purchase price and ensure that all fees, valuation, accounts and other factors have been considered, including finalizing your accounts
- Prepare all necessary corporate documents, working with your attorney
- Prepare all needed tax and other government forms
- Confirm any insurance requirements
- Prepare a sales list for furnishing and equipment
- Get approvals and paperwork together to transfer your agreements and contracts.
- Develop a system to transfer all work-in-progress
- Prepare for lease transfers, assemble all required documentation
- Prepare consulting, management, non-competition and other personal agreements
- Gather warranty and representation exceptions
- Prepare to transfer employee benefits and other succession agreements
- Prepare your bill of sale
- Prepare the settlement sheet or closing documents and the purchase and sale agreement
- Go over the complete list with your broker, advisors and attorney
Scheduling the Closing
When you schedule the closing, you’ll take different steps into account depending on whether the closing will occur in an escrow office or the attorney’s office. In an escrow office, the closing will proceed according to the structures of the escrow account, with the officer confirming that all of your obligations have been addressed. You’ll then sign the necessary documents, and the funds will be transferred and the sale recorded.
In an attorney’s office, both parties will review the purchase and sale agreement, will discuss and address any obligations, needs or contingencies that are still outstanding. All parties involved will sign the documents and arrange for the transfer of funds.
Preparing and Review of the Sale Agreement
You will most likely develop your sale and purchase agreement in conjunction with your broker and attorney. While there are templates available from many online and other resources, it’s always best to draw one up with professional advice that is tailored to your sale.
Finalizing the Sale
During the closing, all parties will discuss any last-minute adjustments that need to be made, and will review and sign all documents including:
- Purchase agreement
- Loan documents
- Consulting, employment and non-competition agreements
- Bill of sale
- Articles of amendment, if any
- Intellectual property transfers
- Closing and settlement sheets
- Asset acquisition statements
Following this, funds will be transferred for the sale, and the deal is complete!
Because there are so many steps to be taken to close your business, in addition to keeping a checklist for selling a Las Vegas business, it’s always advisable to work with an expert licensed business broker, valuation advisor, and exit planning advisor as well as your attorney and financial advisors to make the process happen correctly and in a timely manner.
Schwartz Strategy and Valuation are here to cover all your exit strategy needs and keep the process smooth and simple. Give us a call at (702) 278-1346 to talk about your needs today!