Oregon business owners selling a company must pay close attention to contract structure and items. Improper inclusion or omission could spiral into a disaster.
You have owned and operated your own business in Oregon for several years, but you recently decided to sell your company. Just as you did when you first established your business, take steps to set yourself up for success when selling your business. Learn how to assemble a legal and protective agreement when you want to sell your contract.
Note everyone involved
Be sure your contract lists all parties involved in the sale, which includes seller and buyer partners with an interest in your business or the buying business. Additionally, double- and triple-check that you spell everyone’s names correctly and that the contract also notes everyone’s address and business affiliation. When you all come together to sign the contract, all parties should note their titles after signing their names. That way, everyone has a measure of protection from legal action.
Add a disclosure agreement
Do your due diligence before selling your business by including a disclosure agreement that informs you of any debts, legal actions, legal obligations or fines the buyer may have. If you finance the sale through a buyer with bad partners or bad credit that you were not aware of, a signed disclosure agreement protects you. This is the section of the contract where you want to add a statement from the buyer noting whether she or he is the rightful owner of the company represented and has the authority to buy your business.
List all included items
Sale of business contracts must include all items included in the sale, such as equipment, business records, cash and business logos. Noting items by count and item is a good idea, in case you want to take items with you. For instance, if you sell your office building, you may want to take a desk or chair or two. Do you have loans, debts or any other liabilities? If so, note them on the sale contract. A buyer may request that you add a non-compete clause to the contract so you cannot set up a similar business.
Note sale terms
List the payment date(s), payment method and all other sale terms. Breaking this down further, if necessary, describe whether you and the buyer agree to payment installments, if you want to finance the sell (and the interest rate) and if all parties require a deposit. Will you involve any agents, financial businesses or brokers with the sale? If so, name them in your contract’s sale terms section.
Are you in the middle of putting together the contract to sell your Oregon-based business? If so, consider having a legal professional look over it to protect your interests.