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sell your company

When You Sell Your Business, What’s Being Sold?

By Business Contracts, Business Lawyer
selling a business assets or equity

Whether you’re selling an online business or a brick-and-mortar venture, it’s important to understand exactly what you’re selling. And just as important, what a prospective purchaser wants to buy.

Now if you’re operating as a corporation, limited liability company, or similar entity, chances are prospective buyers will not want to purchase that entity’s equity (e.g. corporate shares).

Instead, they’ll be interested in buying most (but not all) of the company’s assets.

There are many reasons why an asset purchase and sale agreement makes more since than an equity sale.

For example, the buyer is reducing the risk of being held liable for hidden risks associated with your company (e.g., unpaid taxes).

In addition, there are some assets that may not make sense for a purchaser to acquire. For instance, you might drive a company vehicle that the buyer doesn’t want.

So, when you consider selling your business, first identify the assets you don’t want included in a sale.

And recognize an equity sale is unlikely. Chances are you’ll be keeping ownership of your entity or dissolving it after the asset sale.

Does that mean you never sell equity? No. There are a few situations where an equity sale makes more sense than selling assets.

If you’d like to discuss selling your company’s assets (or equity) with Business Lawyer Mike Young, schedule a phone consultation today.

Are You Ready to Sell Your Internet Business?

By Internet Lawyer, Website Lawyer

sell your internet businessReady to sell your Internet business? Internet Lawyer Mike Young helps entrepreneurs sell their e-commerce companies for a fair price while reducing the legal risks (including nonpayment).

Here are some of the common ways that Mike can help you sell your online venture.

Determine your desired outcome

Although you may have a sales price in mind, there’s a lot more that goes into selling an e-commerce company than simply transferring assets or equity in exchange for payment.

  • Do you want to be paid a lump sum or are you willing to accept installments?
  • Will you provide full or partial seller financing for the sale?
  • Do you intend to stay on as a consultant or employee post-sale? If so, under what terms?

Related Article: 7 Keys To Picking The Right Internet Lawyer For Your Business

Mike will use his experience as an Internet business attorney to help you structure a deal that’s right for the goals you want to achieve.

Pre-sale website legal compliance review

A company website that violates the law can prevent a sale or seriously devalue an online business. Mike can perform a Professional Website Legal Review to address legal compliance issues before you try to sell your ecommerce company so that you can maximize the profit you make.

Revise prospective buyer’s letter of intent (LOI)

Accepting a potential buyer’s letter of intent (LOI) at face value is rarely a good idea for any seller. Mike will review and recommend revisions to the offer contained in the LOI in order to protect you from frivolous prospects or efforts by competitors to sabotage your Internet company using the due diligence process to improperly learn confidential information to misuse to compete against you.

Handle due diligence inquiries from prospective buyers

Working with your accountant and your Internet business broker (if you have one), Mike will help field questions from your company’s potential purchaser during the due diligence process. This enables you to focus on your business operations while providing the prospect with the information needed to bring the deal to the virtual closing table.

Protect you with the right legal documents

Ideally, you’ll want Mike to draft the ecommerce legal agreements that will be used to make the deal happen because he has the experience and understands ecommerce. By having Mike prepare the docs, you’ll get more legal protections than would be provided in documents drafted by the buyer’s attorney.

Related Article: 3 Things You Must Do To Sell An Internet Business Quickly

If the buyer’s legal counsel prepares the documents for closing the deal, you’re likely to face two significant problems.

  1. Most attorneys lack the experience to properly draft the legal documents needed to complete the sale of an Internet business. Mike can identify the gaping holes in these documents and fill them with language to protect you.
  2. Documents written by the buyer’s legal counsel are likely to heavily favor the purchaser to your disadvantage as the seller. Mike can review these docs and provide revisions to make the documents fair to you rather than being one-sided in favor of the buyer.

Help you get paid when you sell your Internet business

It’s not enough to sell an Internet venture on paper. You’re going to want to get paid.

Mike knows how to structure Internet company sales in such a way as to minimize your risk of nonpayment, both at closing and for any future payments due if financing terms are provided.

What’s the next step in getting Mike to help you sell an online venture?

When you’re ready to sell your Internet business, the first step is to set up a telephone consultation with Mike to get the ball rolling.

3 Things You Must Do To Sell Your Internet Business Quickly

By Internet Lawyer, Website Lawyer, Website Legal Documents

sell your internet business

If you’ve decided to sell your Internet business, it’s important to follow proven methods for quickly doing so. Here are three steps to speed up finding the right buyer for your e-company.

1. Know The Real Value

Your privately held Internet business is not Google or Facebook. This means there isn’t a public traded stock price to use to value your company.

Do your research to determine what your company is worth, what you’d like to get from the sale, and what’s your bottom line (the least amount you’ll accept).

Related Article: Sell Your Internet Company – 5 Expensive Mistakes To Avoid

You should also decide in advance if you’ll be willing to provide seller financing for some of the sales price.

By preparing before you list the Internet company for sale, you’ll make it much easier on yourself and prospective buyers to reach a deal or quickly reject an offer that doesn’t meet your needs.

2. Prequalify Prospective Buyers

The Web has many get-rich-quick types who will be interested in buying your venture even though they have no realistic means of doing so, i.e. they’re broke and no one will loan them the funds to purchase your e-commerce company.

To avoid wasting your time dealing with these types, you may wish to prequalify prospective buyers by making sure they have the financial means to purchase an Internet company. One method of doing this is to negotiate only with accredited investors who meet certain net worth requirements (the amount varies by country).

3. Retain an Experienced Team of Professionals to Sell Your Internet Business

If you’ve never sold an Internet company before, chances are you’ll want to speed up the process by retaining an experienced Internet business broker, Internet business attorney, and a tax professional (e.g. C.P.A.) who understands e-commerce.

Related Article: 7 Keys To Picking The Right Internet Lawyer For Your Business

Your team will be able to put your business before prospective qualified purchasers plus negotiate and structure the deal in a way that reduces your tax and other liabilities in the process. The amount you invest in their professional services is frequently exceeded by how much they benefit you in getting your Internet business sold quickly and for a fair price.

So how do you get started? You’ll want to schedule a telephone consultation with Internet Lawyer Mike Young to map out a plan to sell your Internet business.