Florida is home to many businesses and is ranked highly when it comes to ease of doing business in the U.S. When you feel it is time to sell your business, you need to arm yourself with knowledge on the key documents you need to facilitate closing the deal. Sell Business in Florida in any state is a process that requires preparation and signing of lots of paperwork. Today, far too many business owners rush through the process without considering exactly what necessary documents are needed. This increases the chances of losing lots of money or creating disagreements that may not be solvable. This guide lists five basic documents that are involved if you want to Sell Business in Florida.
Engagement Letter
This document lays out the basis of a working relationship between the person selling the business and their investment advisor. Through this document, both parties gain an understanding of each other’s duties and responsibilities. At its core are the terms and conditions of the engagement, including the fee to be paid for the advisory services. Remember the investor commits to deliver the best deal ever and to ensure everything goes as planned. Be keen about the clauses to be inputted into the agreement such as the termination clause and the necessary steps you need to go through before you conclude the engagement.
The Teaser
In Florid, the Teaser is considered one of the most crucial documents when selling a business. It defines the investment opportunity for buyers and is sent out to potential investors looking to buy a business. The whole logic behind a teaser is to entice potential buyers. By preparing top-notch teasers, you distinguish your business from the rest, but this doesn’t mean you should make it more attractive than it is in the actual sense.
The Non-Disclosure Agreement (NDA)
Perhaps you already have heard about Non-Disclosure Agreements, or NDAs, as they are popularly known in the business circles. This document serves the purpose of preserving any private or confidential information, including business secrets that may have been shared between the buyer and the seller during the transactions. Every seller wants to ensure that your potential buyer doesn’t use this opportunity to take off with what you consider very confidential about the business such as vendor and clients’ information. A well-crafted NDA will secure your investment and paves the way for a confidential information memorandum (CIM), which details insider information that allows the seller to share information and give the buyer a better insight into the working of the company. This will set the pace for purchase and subsequent take-over.
Letter of Intent (LOI)
It is a document that your buyer will send you upon being convinced that the investment is worth buying. It is within this letter that the buyer first places the proposal to purchase the business. It signifies that the buyer is serious about buying the business and specifies timeframe, closing conditions, and more.
The Purchase Agreement
When it is time to draft a purchase agreement, it is a good idea to work with an experienced attorney since you want someone who has a firm grasp of business or commercial law. Since it is something that will bind you legally and forever, you want it to be as water-tight as possible so as to protect your interests and that of your partners if any. Like all other contracts, every purchase agreement should be tailor-made to suit specific transactions or purchase deals. A reliable and reputable lawyer will walk you through the process and help you craft a sustainable agreement.
