This could include financial and other information deemed necessary to make an offer and a confidentiality agreement. A fee can be charged for the package to help discourage those not genuinely interested and to help defray expenses. Although there are some matters, such as environmental liabilities, that are very difficult to leave behind, there are many others that can be handled to minimize legal exposure. Also consider limiting the period in which the representations and warranties given will apply, and waiving rights of subrogation related to insurance coverage. Further consideration should be given to any other contingent liabilities and obtaining appropriate indemnification from the buyer.
Most businesses involve some third-party relationships.
As noted above, important assets in the business may be contracts such as employment agreements, leases, franchise agreements or favorable loans. Each of these involve third parties that may need to be consulted in connection with a potential sale, and consent to assignments obtained. It is also important to review and address this issue early in the process. Waiting until the latter stages of the sale process can prove disastrous if third parties add additional requirements or prohibitions to the assignment of their contracts. After the Sale A seller may desire to maintain some involvement in the business, or the buyer may even require it to effectuate a smooth transition or to otherwise utilize perceived expertise.