November 2010

Preparing Your Business for Sale

Practice Area: 

By Terence P. Kennedy

As a business owner, chances are that at some point in your life, you will sit back in your chair, stare out your window and ask yourself “what else is there?” That’s the point, the epiphany, if you will, at which you realize that life is short and there is more to it then grinding it out day after day. This is true even if you love your business and have nurtured it through its ups and downs, the turmoil of the financial crisis and all the daily impediments that a business is bound to experience. Nevertheless, you yearn for something more. Maybe you want to work in the public sphere or for a charity where there is less pressure. Maybe you want to play 36 holes everyday. Maybe you want to travel and smell the roses. It all sounds good. Whatever you want, as a friend of mine says, “you should retire to something .”

The Seller Confronts Due Diligence

Practice Area: 

By Terence Kennedy

Let me paint the scene for you. You have decided to sell your business. You and your advisors circulated nondisclosure agreements to potential suitors. The suitors prepared letters of intent. You chose the one you thought was the best and have negotiated it. The purchase price might not be what you first expected, but you believe the deal is basically fair. The letter of intent says that the deal is expected to be signed and closed within 120 days during which time you and the buyer will negotiate the definitive purchase agreement. The letter of intent also provides that during that 120 day period the buyer is entitled to perform due diligence on your business. The obvious question is “what’s that?”

Continuity in the Sale of a Business

Practice Area: 

By: Terence P. Kennedy

One of the important decisions that a seller of a business needs to make is how long he or she is willing to stay with the business after it is sold. Seller should be honest with himself about his feelings and his desires. On the one hand, if the seller stays on with the business as an employee or a consultant, he needs to understand that this is a lot different than being an owner. In many cases, seller has owned his business for many years and obviously has reported to no one.

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