Contracts You Need When Selling Your Business

In the last couple of articles, we’ve been discussing when is a good time to sell your business and how to prepare the documentation for a potential buyer. Today, we’re going to look at the legal contracts you will need when you have found a buyer and the reasons why they’re important. Confidentiality or Non-Disclosure Agreement As we’ve stated before, it’s crucial to have a non-disclosure agreement in place to protect your proprietary information before you disclose sensitive business details to a potential purchaser. Secured Loan Agreement Sometimes a seller may decide to offer vendor finance to facilitate the sale. This agreement allows you to document the terms of the loan. Assignment of Lease Agreement If the new owner plans to stay in the current premises you will need to transfer the lease to the new owner. Commercial  or Retail Property Lease Business owners may often wish to retain the free hold premises and lease these premises to the new business owner. Option to Purchase Real Estate Many purchasers require a first option to purchase the freehold property if available as their new business grows ensuring future protection. Partnership Dissolution Agreement You may have a business partner and the end of the partnership requires a formal dissolution. Consultancy Agreement Many businesses may require the specialised knowlegde only the previous owner can provide to facilitate a smooth transition. A Consultancy agreement will provide the framework for how you will work together. To fulfill your obligations and ensure you have adequate legal protection, you have two options: you can hire a solicitor to draft the appropriate agreement or you can purchase a legal document template. Legal Document Templates are an effective way of meeting your legal obligations without spending a fortune on lawyers – to learn more visit RP Emery DIY Legal Kits, Australia’s leading online legal publisher. We even have a dedicated Sale Of Business Value Pack which provides all the documents you need at a fraction of the cost.