The lawyer drafts assignment and takeover agreements for the transfer of commercial contracts, customer contracts or distribution agreements that should be assigned to the buyer on the closing date. The lawyer may be asked to review the zoning in accordance with the law to ensure that the zoning is consistent with the nature of the business. In other cases, the lawyer must request and review the status certificates or authorize the certificates to ensure that no violation of the nature of the business has occurred. Before entering into the transaction, the buyer wants to ensure that there are no registered liens or other security rights (known to lawyers as UCC-1 deposits) against any of the assets. Therefore, the buyer`s attorney will order a search, similar to a title search for real estate, across the state, county, or other appropriate documents. Once the transaction is complete, you will need to have your lawyer record any security you have in the buyer`s business or in certain assets, such as their home or other real estate. If your finances have not been audited, and especially if they were created in-house, the buyer may want you to pay for updated bank statements from an accountant of their choice as a condition of closing the sale. The buyer then performs an independent financial analysis of your business. For example, the buyer can look at your key financial indicators and look at trends over time, compare them to industry averages, create projected statements for the company using their own assumptions, and more. Buying and selling a business is a complex transaction in which a lawyer must draft an agreement, comply with the terms of the agreement and, if necessary, prepare closing documents. Final documents can be complex and often require approvals or submissions from the provincial or federal government.

Each company also needs different approvals, permits or licenses required for its specific operation or specific contracts. Ideally, you`ll have collected and studied most of the information the buyer wants while preparing your business for sale. The vast majority of them are in paper form. The buyer wants to see copies of all leases, contracts and loan agreements, as well as detailed financial records and bank statements. Sometimes business brokers conduct a controlled auction in which they describe the seller`s business to a number of likely buyers. You will bid in the form of letters of intent that will be presented to the seller on a specific date.