Podcast Sponsor: Lisa Bothwell

How to Legally Prepare for Selling Your Business

Thinking about selling your business? Don’t let legal oversights reduce your company’s value. Selling a business is a complex process, and legal missteps can cost you time and money. On this episode of the 4M Strategies™ podcast, Carl J. Cox, CEO of 40 Strategy and 40 Accounting, talks to attorney Lisa Bothwell from AMM Law breaks down the essential legal steps you need to take before finalizing a sale.

Why Legal Preparation Matters

Failing to organize legal documents, contracts, and intellectual property can create hurdles during due diligence. By proactively addressing these issues, you increase your business’s value and avoid last-minute deal breakers.

Key Steps for a Smooth Business Sale

Secure Your Intellectual Property

• Identify trademarks, patents, and software.
• Decide what will be included or excluded in the sale.
  
• Ensure employee-created IP is properly assigned to your business.

Organize Your Contracts

• Gather all customer, vendor, and employee agreements.
  
• Verify if contracts can be assigned to a buyer.
  
• Avoid revealing sensitive customer data too soon—use general revenue figures instead.

Disclose Litigation Early

• Address past and ongoing lawsuits transparently.
  
• Work with the buyer on indemnification agreements if needed.

 Ensure Corporate Governance Compliance

• Locate formation documents, shareholder agreements, and tax filings.
  
• Obtain a certificate of good standing.

Manage Employee Awareness & Confidentiality

• Employees noticing unusual document requests may become suspicious.
  
• Use stay bonus agreements to ensure key employees assist in the transition while maintaining confidentiality.

Increase Business Value Through Legal Preparation

Selling your business can be stressful, but the right legal preparation can protect your interests and maximize your sale price. Selling a business is a full-time job—preparation is key to maximizing value. Tune into this episode of $4M Strategies™ to hear expert insights from Lisa Bothwell.

Podcast Sponsor: Lisa Bothwell

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