What Are the Legal Documents Needed to Sell a Business? // Episode 51 of Dealmaking with LD

Thank you for joining us for another episode of Dealmaking With Laura Difrancesco! On today’s episode, Laura discusses all of the necessary legal documents when it comes to selling a business. Starting with the importance of the documents themselves, then reviewing initial documents and due diligence. Laura then goes into some real-world examples to conclude. Tune back in next time for more knowledge on buying and selling businesses. What You’ll Learn Why Legal Documents Matter // Think about it like this: you would not necessarily buy full-sticker MSRP on a car without getting the title to the car…You would expect to get a title to the car if you’re buying the car! It is the same when it comes to the transfer of a business. With a business comes more types of legal assets, making it more of a challenge than buying a car. Initial Documents // We start off with our letter of intent, which is the foundational aspects for the terms of the sale. Then comes the non-disclosure agreement; before the seller provides any confidential information you have to make sure there is going to be confidentiality between the parties. Due Diligence Documents // Before the parties began legally documenting the transfer, they need to exchange documents to share the existence of the business. In an under 10 million dollar deal, you might see anywhere from 150-800+ documents required during this phase. Legal Documents // We have different closing checklists when it comes to assets versus stock purchases; in an asset purchase you have to transfer each of the different asset classes legally in a different manner, whereas in an equity purchase it is simply the ownership interest of the business itself. Working with Legal Professionals // Working with a lawyer is highly recommended. This is not an area that you would want to DIY. Ultimately it will be more expensive to fix any issue than to just do it right the first time with professionals. Not only are they going to make sure your documentation is correct, they are also a valuable team member for all other aspects of the deal. Episode Highlights: [00:00] Introduction [03:00] Today’s Topic [03:53] Why Legal Documents Matter [10:45] Initial Documents [14:15] Ad Break [15:15] Due Diligence [18:44] Ad Break [19:43] Legal Documents [35:47] Working with a Legal Team Resources Mentioned Entrepreneurship Through Acquisition Waitlist // https://lauradifrancesco.co/eta-landi... For free legal guides and resources // https://deanstreetlaw.com/resources Unlock your legal roadmap to success with Acquisitions Insights // https://lauradifrancesco.co/acquisiti... Schedule your complimentary consultation with Dean Street Law today! https://www.deanstreetlaw.com/potenti... Connect with Us Follow on Twitter: @LMDiFrancesco // https://x.com/LMDiFrancesco Follow on Instagram: @lauramdifrancesco and @deanstreetlaw // https://www.instagram.com/lauramdifra...   / deanstreetlaw   Connect on LinkedIn: linkedin.com/in/lauradifrancesco Our Sister Brands Follow Flourish Coworking Space on Instagram: @flourishwestchester //   / flourishwestchester   Follow Ethereal Farms on Instagram: @etherealfarms //   / etherealfarms   Check out my other podcast We Grow Together on Spotify and Apple Music // https://open.spotify.com/show/3XsZWFX... https://podcasts.apple.com/us/podcast... Don't miss an episode of "Dealmaking with Laura DiFrancesco." Follow me on your favorite podcast platform and visit deanstreelaw.com to schedule a consultation today. Whether you're a seasoned entrepreneur or stepping into the world of mergers and acquisitions for the first time, let us guide you to success. Follow, rate, and review to help us reach more aspiring dealmakers like you! Credits Host // Laura DiFrancesco Editor // Ava Balliet Associate Producer // Ava Balliet #dealmaking #corporatelaw #lawyer #mergersandacquisition #mergers #acquisition #acquisitioninsights #buisness #deanstreetlaw #corporateattorney #billion #billiondollardeals #billiondollars #finance #realestate #M&A #duediligence #contracts #NDAs #antitrustlaws #codeofconduct #regulatorycompliance #assetpurchaseagreement #duediligenceprocess #letterofintent #purchaseagreement #closingdocuments