For any Texas entrepreneur, the decision to sell their business is a major inflection point.
When you go to sell your business in Dallas, ideally you’ll make more money than you spent to build it. And while you may desire to sell your business quickly, a fast sale does not always equal a successful one.
Successfully selling a business in Dallas requires careful preparation.
In this blog post, our experienced Dallas business law team at Hunnicutt Law Group will walk you through some frequently asked questions. These are the questions we commonly field when helping Texas small business owners sell their businesses.
We’ll also address some tips and tricks to best position yourself to sell a business in Dallas.
How Much Is My Dallas Business Worth?
Valuation is one of the biggest challenges in selling a business in Dallas.
For small business owners, it is often difficult to gauge how much your business is worth. A great option is to hire a business valuation expert. This expert will review all your records and give you a qualified, independent value appraisal based on current market conditions.
This can take the emotion out of putting a price tag on the business you’ve built with your own two hands. In turn, a professional appraisal will strengthen your bargaining position with potential buyers.
Knowing that the value of your business has been vetted by an objective appraiser carries a lot of weight!
What Records Do I Need to Sell My Business in Dallas?
Don’t let the first time you think about corporate compliance be when you prepare to sell your business in Dallas!
Often, small business owners ignore basic corporate governance and compliance once their business entities are formed.
However, it is critical to ensure your filings are up to date prior to even thinking of selling a business in Dallas. Request a Certificate of Good Standing for your company so you can confirm your status with the State of Texas.
The last thing you want is for a deal to collapse because you forgot to file your annual report with the Texas Secretary of State.
Imagine having to explain to your investors that you were unable to sell your business for the simple reason that you failed to file a single form.
Speak with a qualified Dallas corporate lawyer today if your Dallas business needs a corporate governance tune-up.
What Business Issues Should I Consider When Selling a Business in Dallas?
Prior to selling a business in Dallas, you’ll need to get your business affairs in order.
Business owners should assess the risks facing their business and take that into account when calculating value. You should also do your best to ensure your company is not at risk of being sued in the foreseeable future.
You do not want any disruptions to the sale of your business from an unforeseen lawsuit.
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What Legal Issues Will I Encounter If I Sell My Dallas Business?
The most common legal issues that arise when you sell your business in Dallas involve the division of property and the handling of debts. Even if you’re just exploring the sale of your business, check your company’s governance documents.
If they don’t provide you with a good roadmap of what to do in the event of a sale, speak with a Dallas area business lawyer right away. Successfully selling a business in Dallas could depend on that conversation!
Other legal issues that arise when you sell a business in Dallas include the need for legal documentation.
You may need to draft or review any of the following:
- Non-disclosure agreement,
- Purchase agreement,
- Due diligence reports,
- Financial summaries,
- Governance reports, and
- Powers of attorney.
Legal documents can take a significant amount of time to draft. It is important to engage trusted counsel right away once you begin the process of selling your Dallas business. The sooner you have a lawyer on your side to draft and review documents, the fewer legal issues you’re likely to encounter.
Contact a Dallas Business Lawyer for Help
If you’re thinking of selling a business in Dallas, you should speak with an experienced Dallas business lawyer to make sure you cover all the bases.
Our experienced business law team at Hunnicutt Law Group has decades of experience in helping Texas entrepreneurs navigate business sales.
Attorney Stephen Hunnicutt has spent over 30 years helping clients achieve their business goals across Dallas and beyond.