Know the Legal Requirements to Exit Your Small Business - dummies

Know the Legal Requirements to Exit Your Small Business

By Clive Rich

Part of Law for Small Business For Dummies Cheat Sheet

When you’re exiting (that is, selling) your small business, you need to know what’s required legally. At last — the finishing line is in sight. Like an over-heated decathlete you can’t stop extra disciplines being added to your list of events, including:

  • Raising lots more money for significant growth.

  • Creating exponential growth through partnerships and joint ventures.

  • Buying or merging with other firms.

  • Repeating previous stages of the business with other products (diversifying).

  • Preparing the business for expansion or sale.

  • Selling shares or assets.

  • Exiting the business.

When plotting your path to blazing success, take note of this checklist of legal issues to consider:

  • Implementing significant ‘A’ or ‘B’ funding rounds.

  • Entering joint venture agreements with other partners.

  • Constructing acquisition or merger agreements with target companies.

  • Implementing legal steps from previous stages of your business’s growth for new diversified products.

  • Dealing with terms sheets and any buyer’s due diligence.

  • Contracting to sell all or part of the business as shares or assets.