What should you be considering if buying or selling a business in San Diego or Southern California? Preparing your business for sale can take more than a year. This is why it is important to work with the integrated tax, legal, accounting and business advisory professionals at Allen Barron. You never know when a large business or someone looking to enter the San Diego market will knock on your door and make an offer you can’t refuse. Recently, a client was contacted unexpectedly by one of the world’s largest electronic corporations who wished to purchase them. They were woefully unprepared.
Preparing a business for sale requires business financials and tax returns for at least the past 3 years, and a set of books which is ready for review. Important documentation including customer lists, suppliers, business contracts, sales and service agreements and all other documentation associated with your operations must be assembled and up to date. Most sellers are looking to receive top dollar for their company, and to walk away without any future contingent liabilities.
Buyers on the other hand have a significant challenge ahead of them as well. Allen Barron helps at every step in the process, from negotiating the transaction, creation of the asset purchase agreement or stock purchase agreement, due diligence, financial audit and review of the books as well as assurance of clear title to all assets requires discipline, focus, technical and financial understanding and respectful assertiveness. It’s about to be your business and you have a right to learn everything possible before agreeing to complete the purchase.
How should the transaction be structured to minimize taxes and maximize the benefit sought by both parties? What role will the seller play to ensure that established Goodwill and existing customers, employees and suppliers transition smoothly? What should you be considering if buying or selling a business in San Diego? We invite you to contact Allen Barron for a free consultation at 866-631-3470.