Why do you need an experienced business attorney when planning to sell your business?  What are the steps in this complicated process and who can guide you through it to ensure a smooth and profitable conclusion? How can the 40+ years of experience of the San Diego mergers and acquisitions attorneys at the Watkins Firm make sure you achieve the best possible outcome?

It’s All About Attention to Detail

The Watkins Firm has represented the San Diego business community and parties in buy sell agreements stock purchase agreements and asset purchase contracts for more than four decades. Over the next five years, roughly three million US business owners are expected to sell their company in all parts of the United States, including here in California.

The sale of a business is more challenging than many owners understand. In most cases, the owner will require sound business counsel and legal services before, during, and after the process.  If you are planning for the sale of a San Diego business and wish to maximize the value of your company there are several steps which must be taken to position the company and it’s books for acquisition.

Think of the purchase of an existing home.  If the house is well maintained and all warranties and systems are well documented the value of the home is increased.  If there are things which have been neglected here and there over the years the home simply will not bring the highest possible value.  The same holds true when selling a business or company.

The Steps when Planning to Sell Your Business in San Diego

While no two businesses or sales are the same, the counsel of an experienced business attorney when planning the sale of a San Diego business can help to ensure that the right steps are taken along the way.

The first step in the process is usually to establish the valuation of the business. Financials will need to be reviewed to make sure they are accurate.  Prospective purchasers will want to know whether or not the company is increasing in value or stagnant.  Are the books in order?  Are there contracts in place with existing suppliers, customers and even employees to ensure a smooth transition?

Ensuring Success Before During and After the Transaction

It is also important to ensure a reliable leadership team is in place not only for the sale of your company, but after the transaction is complete as well. The selling owner needs to make sure the new acquisition company, individual or team will be able to take over the company, preserve existing internal and external goodwill and continue forward on the path toward success.

In many cases contracts are established to ensure transitional employment of the existing owner and key players within the company, and to keep them in place for a period of months after the transaction is consummated.  This helps to ensure a smooth transition and protection of existing customer goodwill.  The agreements in a stock or asset purchase should also provide a mechanism to iron out and balance issues associated with business performance or financials as well as undisclosed or unforeseen contingent liabilities.

Pro-Tip: “There are a lot of potential hazards that can gum up the works. Your books need to be in order, there are key customers, key employees, and other owners/shareholders. There’s often more than just minority shareholders. There’s different classes of stock, and then you’d have to have due diligence.

Now, if you have a good CPA who can look at things before you even sell, if you’re thinking about selling your company, have your lawyer and your CPA set up months in advance so that you can make sure that somebody asks, well, if I’m buying the company, I’d ask this. Or the CPA can say, well, I’d be concerned with that, or they’re going to want this report and that report.

Or we need to restructure this and that, so it’s a little cleaner and a little crisper. Let’s prepare it. So when you do get an offer and they say, send over this and that, you say, no problem. In that afternoon, they got the paperwork, you’ve got the deposit in your escrow account. They’ve got the paperwork, and the deal’s already moving fast towards closing, and they’re not worried about whether you’re just going to go make something stuff up.” – Dan Watkins, Founding Partner

Are you Thinking About Selling Your Business in San Diego?

Are you thinking about selling your business in San Diego or anywhere in California?  Many people are interested in selling their business, but are unsure of which steps to take and have no idea what to expect as the process moves forward. Planning for the sale of a San Diego business not only increases the value of what you will receive for your company, it will help to facilitate the transaction itself so that you are free to move on to your next opportunity.

The Watkins Firm has managed business acquisitions and the sale of companies for more than 40 years.  We have helped with thousands and thousands of transactions to buy or sell every size company from a small one or two person entity to a multi-state network of locations and/or entities.  Do you want to achieve the best possible outcome in the sale of your company?

We invite you to review our podcast Episode 40 – The Keys to a Successful Stock Purchase Acquisition as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.