Closing the Sale and Securing the Deal

Now that you’ve found a suitable buyer for your business and have agreed upon the final terms of the deal, it’s time to get organized and plan for the big closing day. For an easy transition, certain steps must be taken before, during and immediately after the deal has closed. Work with your broker, if you’re using one, and your attorney and accountant to confirm all the necessary details for a smooth closing.

Pre-closing Preparation

Schedule your closing meeting, preferably in the morning during business hours, and when all parties are available. It’s important to schedule a time when banks or government offices are open in case you need to reach them. It’s also helpful to schedule the meeting at the end of the quarter, month or pay period in order to simplify proration of monthly expenses that transfer with the sale.

Prepare the following documents prior to the closing meeting:

Finalize the Deal in the Closing Meeting

The closing meeting should be attended by you and any other owners of the business; the buyer(s); any third-party loan guarantors (if any) unless they previously signed personal guarantees or provided powers of attorney to the in attendance; your attorney and possibly your buyer’s attorney; the escrow agent (if any); your broker and others whose signatures will be required.

The closing meeting is primarily a time to review and sign all the necessary documents to complete the transaction. The primary documents include: the purchase and sale agreement and bill of sale; lease transfers, vehicle transfers and other documents involving the transfer of business assets seller’s consulting, employee, and/or non-competition agreements; articles of amendment to change the name of your business; transfer of patents, trademarks and other intellectual property; closing and settlement sheet; Asset Acquisition Statement and IRS Form 8594; and buyer’s payment for the purchase price.

Post-closing Transition of the Business

Your business has now been passed on to the new owner, but before you move on the next phase in your life, you must close the loop on a few actions to transition the business operations to the buyer. Your attorney and broker will assist you through this final post-closing process.

Turn over all items to assume business operation

Dissolve Your Business Entity

Complete Forms and Actions to Cease Operations of Business Entity

At this point the deal is complete! You can now notify your employees and make an announcement to you customers, suppliers and the general public. Congratulations!

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