20 Jun Around the Web: A Week in Summary
A recent article from ThinkAdvisor entitled “3 Ways to Structure a Buy-Sell Agreement” discusses an often-overlooked element of starting a new business: exiting the business. Crafting an exit strategy is very important and can help a business continue to flourish with or without the original owner.
A critical part of developing an exit strategy is the Buy-Sell Agreement, a blueprint for the eventual transition of the business due to sale, buyout, transition, divorce or death.
The author outlines the following three types of buy-sell agreements and goes on to discuss funding the agreement.
- Cross Purchase Agreement
- Stock Redemption Agreement
- Combination Agreement
Click here to read the full article.
A recent article from Real Business entitled “Selling your business: How to conduct a winning viewing” talks about how to get your business ready for a showing with potential buyers. First impressions matter, so it’s well-worth the time to prepare for this critical step in the business sale process.
Important areas to prepare include: the premises (how does it look?), paperwork (financials, leases, employees, suppliers, customers), timing (when is the best time to show?), staff (presentable and briefed when appropriate) and knowing your story (the true story!).
Click here to read the full article.
A recent article by Axial called “Why Exclusivity Periods Are Scary and How Sellers Can Minimize Risk” examines what happens when a potential buyer demands an exclusivity phase. Michael Shaw, the chairman of the business and finance group at Chicago-based law firm Much Shelist, answers questions such as:
- Are there exceptions when it comes to no-shop phases?
- What’s the typical length of time of a no-shop period?
- When does the exclusivity period typically begin?
- What’s the biggest risk for sellers of no-shops?
- How can sellers minimize risk?
