Various troubling issues may arise when an Illinois business owner is attempting to sell a business to a new owner. Often, such situations occur during contract negotiation if a potential buyer discovers that a business owner has been less than forthright in discussing the details of a business’s current standing. Whether regarding finances, inventory or customer-based issues, some experts say it is best to “tell all” right away to increase one’s chances of a sale.
Most potential buyers strive to make well-informed decisions and appreciate it when a business owner is willing to share any negative details that might exist at the time. Being upfront about financial difficulties or backlogs brings clarity to the situation and adds to a current business owner’s credibility. On the other hand, if a buyer suspects a business owner of hiding important information, the result may be that no deal takes place at all.
Sometimes, a business owner is only looking to sell part of an existing business. In such cases, it is all the more important to be honest about any troubling issues that exist. Negotiating a contract for partial ownership is often complicated and best undertaken with the assistance of an experienced business and commercial law attorney.
Contract negotiation for selling a business can be legally challenging, especially for those who are not familiar with the process. Even after full disclosure is given to a potential buyer, a business owner may feel the need to be advised by an attorney who has helped draft and process similar contracts for others. Business owners in Illinois may request a consultation with an available business and commercial law attorney to obtain answers to any contract questions they might have.
Source: postcrescent.com, “Go ugly early when selling a business“, Scott Bushkie, March 12, 2016