In this final article describing the professionals at the table, I review the ways attorneys help exiting business owners.
Attorneys play a crucial role in the business succession and exit planning processes by providing expertise in various legal, financial, and strategic areas. Here are some ways attorneys assist business owners with their business successions and exits:
- Structuring the Sale:
Attorneys can work with valuation experts to determine a fair market value for a business, determine the most beneficial structure for the sale from a legal and tax perspective, and negotiate terms and conditions to protect the seller’s interests.
- Drafting and Reviewing Contracts:
Attorneys are experts at drafting and reviewing “the purchase and sale agreement” to ensure all terms are clear and favorable. They can include “non-compete and confidentiality clauses” to protect the seller’s future interests, and, if the sale includes the seller staying on as an employee or consultant, they can draft appropriate “employment or consultancy agreements.”
- Tax Planning:
Attorneys can also provide advice on the tax implications of the sale of a business and help structure the deal to minimize tax liabilities and ensure transactions comply with all relevant tax laws and regulations.
- Regulatory Compliance:
Attorneys can, furthermore, assist with the due diligence process, ensuring all aspects of the business transaction comply with local, state, and federal regulations and they can also help in transferring or acquiring necessary business licenses and permits for the new owner.
- Asset Protection:
Attorneys identify and mitigate potential legal risks involved in the sale and can ensure that liabilities are clearly defined and addressed in the sale agreement, protecting the seller from future claims.
- Succession Planning:
For family-owned businesses, attorneys assist with estate planning to ensure smooth transition and protection of family assets. They help in setting up trusts or revising wills to align with the exit plan.
- Financing and Payments:
Attorneys can structure “seller financing agreements” if the buyer needs financial assistance to complete the purchase and manage escrow services and to ensure secure and fair handling of funds during the transaction.
- Transitional Agreements:
Attorneys can draft agreements that detail the “roles and responsibilities” during the transition period, or “in the event of death, disability, divorce, disagreement, or distress” and provide mechanisms for resolving any disputes that may arise. Attorneys can also assist with crafting a “communication strategy” to announce the sale to employees, customers, and stakeholders.
- Confidentiality and Public Relations:
Last, attorneys can draft “non-disclosure agreements” (NDAs) to protect sensitive business information during negotiations.
By leveraging their legal expertise, attorneys ensure that the exit planning process is thorough, legally sound, and aligned with the business owner’s personal and financial goals.
About Greater Prairie Business Consulting, Inc.:
Greater Prairie Business Consulting, Inc. is an award-winning, national consulting practice serving entrepreneurs, small to mid-sized privately held and family-owned businesses and middle market companies of any type with revenues between $1 million and $250 million. The firm helps small, mid-sized and middle market companies maximize their performance and exit.
Greater Prairie Business Consulting, Inc. can be reached by calling 1-800-828-7585 or emailing info@gpbusinesssolutions.com.
About the Author:
James J. Talerico, Jr. is an award-winning author, speaker, and a nationally recognized small to mid-sized (SMB) business expert.
With more than thirty- (30) years of diversified business experience, Jim has a solid track record and an A+ BBB rating helping thousands of business owners across the US and in Canada tackle tough business problems to improve the performance of their organizations.
His client success stories have been highlighted in the Wall St. Journal, Dallas Business Journal, Chicago Daily Herald, and on MSNBC’s Your Business. He was named “Texas Business Consulting CEO of the Year,” by CEO Today Magazine, identified as a “Top 10 Management Consulting Entrepreneur to Watch in 2023” by Entrepreneur Magazine, was listed among the “10 Most Visionary Companies to Watch in 2023” by Inc. Magazine, and has also been ranked among the “Top Small Business Consultants” followed on Twitter.
For more than half a decade, Jim was a regular guest on “The Price of Business,” a nationally syndicated radio program on Bloomberg Talk Radio and has also appeared as a subject matter expert on many FOX Radio interviews. He is a regular contributor to several blog sites and has frequently been quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, The Entrepreneur’s Review, and on INC.com, in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.
Jim received a Gold “Stevie Award” for “Thought Leader of the Year,” a Gold “Stevie Award” for “Media Hero of the Year During Covid” and a Bronze “Stevie Award” for “Best Entrepreneur” in the Category of “Business and Professional Services” at the American Business Awards ® in New York City. The competition received more than 3,700 nominations and is the premier accolade for business excellence in the US honoring organizations of all sizes and industries. Jim also received an “Outstanding Leadership Award” at the Money 2.0 Conference for his contributions to the financial services industry.
Jim is the author of “8 Steps to Becoming an ETHICS FOCUSED ORGANIZATION,”™ a small business certification program that utilizes a unique eight – (8) step approach for strengthening ethics in any organization. The certification program won the Better Business Bureau’s “Torch Award for Ethics” for the North – Central Texas Region, the International Better Business Bureau’s “ Torch Award for Ethics,” and a Gold “Stevie Award” for “Ethics in Sales” at the International Sales & Customer Service Stevie Awards ®. Participants who complete this certification program are eligible to receive eight – (8) continuing education units from the University of Texas’ Division of Enterprise Development.
Jim received his Certified Business Exit Consultant (CBEC) ® designation from The International Exit Planning Association (IEPA) to help entrepreneurs, small business owners, family businesses, and middle market companies maximize their business exit, and he received his certification in succession planning from the ASPE.
Jim is also a Certified Management Consultant (CMC) ® and an active member of the Institute of Management Consultants.
