Our legal representation can start years before a potential exit actually takes place. It is never too early to build an exit strategy. In fact, we discuss exits with all of our business formation clients – before they have even started their company!
Before the Transaction
One of the most time consuming (and therefor expensive) aspects of a potential business exit is the due diligence process. Due diligence is a comprehensive appraisal process undertaken to establish a business’s assets and liabilities and to evaluate its value. Potential buyers want to see that the business is in good standing with clean books and best practices. Many companies make the mistake of starting to collect due diligence materials after they have made the decision or even started the process of selling the business. That often means retroactively cleaning up records, chasing down missing files and backdating agreements.
We maintain a company’s due diligence records from day one, including an inventory of the Company’s current operations using a due diligence checklist similar to what the Company would receive from a potential buyer or investor. Deliverables include: a digitized and organized corporate records book, a thorough account of current business practices, and recommendations to optimize productivity, and maximize appeal to potential acquirers, investors or partners. Then, when it is time to approach potential buyers, the legwork is already done.
During the Transaction
With a comprehensive exit strategy and complete due diligence records when the time comes to make an exit, the process can be streamlined. We will ensure you understand all of the agreements on the table, along with all of the costs and benefits associated. Regardless of if you are winding down the company, transferring it to a family member or associate, or being acquired by a competitor or individual, we will negotiate on your behalf to ensure the transaction is in your best interest.