Selling a small business in Florida requires utmost accuracy in the documents involved in the transaction. The seller and the buyer must be fully aware of their rights and obligations under the contract, which requires a detailed review of all the relevant paperwork.Ā
In this article, you will find out the fundamental documents involved in a small business sale in Florida.
How Do I Sell My Small Business in Florida? – Full Walkthrough
No matter the size of your business, it is crucial to structure the legal and operational aspects of the company for sale. Considering this process has several subsets, the guidance of an experienced business attorney cannot be taken for granted.Ā Ā
Investment Teaser
Also referred to as a “teaser document,” the investment teaser is a summary letter listing the highlights of a company to potential buyers. Often considered a primary document for selling a business, it must be drafted professionally.
It is important to note that this document does not provide any information that could identify the seller or the legal entity. In essence, the content of the letter usually consists of facts that entice prospective buyers, while non-positive details may be omitted.
Non-Disclosure Agreement
A non-disclosure agreement (NDA) is a document signed between the seller and the buyer to secure the confidentiality of trade secrets and other business information involved in the transaction.Ā
During the whole business sale process, both parties exchange several documents of confidential nature. Including an NDA among the terms and conditions of the sale guarantees that the buyer will not seize the opportunity to appropriate the information and simply make off.
Examples of assets that may be protected by NDAs include secret recipes, client lists, unique procedures, etc. As with any type of restrictive covenant, a proper NDA must meet the statutory requirements established by Florida law.
Letter of Intent
A letter of intent (LOI) is a document used by the buyer to confirm the preliminary commitment to the transaction. This stage gives the seller a chance to listen to the buyer’s ideas and negotiate the terms and conditions of the final purchase agreement.Ā
Once the buyer submits an LOI, it is a positive indication that the transaction is gradually getting closer to a successful deal. As a “pre-closing” version of the purchase agreement, the specifics of the document will depend on several elements, such as:
- The nature of the transaction
- The business’s size and structure
- The proposed timeframe for the deal
- The proposed conditions for closing
- Due diligence requirements
Business Purchase Agreement
Also referred to as a “purchase of business agreement,” this contract is the legally binding document that transfers the ownership of the business from the current owner to the new buyer.
Ultimately, the purchase agreement is the result of the terms and conditions established between both parties involved during the negotiations held so far.
As the closing process also involves several other documents, it is fundamental to rely on a seasoned attorney to review the documentation and ensure a successful closing.
Selling a Small Business in Florida – Immediately Contact an Expert Florida Attorney
A well-versed legal advisor in Florida business sales, Attorney Romy B. Jurado willingly wants to help you succeed. Contact us today by calling (305) 921-0976 or emailing [email protected] to schedule a consultation.Ā
