Baby boomers are retiring, and that means their small businesses are being acquired at an increasing rate.
Boomer business owners are starting to throw in the towel, and a recent Pepperdine University study pinned the sales of businesses from the end of 2012 and into 2013 on retirement, the Associated Press reports.
What does this new trend mean for your small business?
For any business owner there comes a time when you need to consider selling your office. It's important to know the legal implications when you do.
Maybe it's because you're retiring and handing the business over to someone new. Maybe it's because your business is growing and needs a bigger home. Regardless of the reason, you still need to know how to protect your legal interests.
An experienced attorney will be able to handle all the details but you still want to know what to look out for in the process. Here are five legal issues to consider:
When an owner decides to sell a company, there are a few things he must do before the company is put on the market. First, all records need to be put in order, including financials, leases, legal documents and licenses. Then the business must be appraised--a reasonable price is best for all parties. After that, the owner may want to employ a broker to help get the word out and handle the negotiation side of any dealings. During this process, the business must continue to grow.
If all goes well, a deal is reached, financing is acquired, and a closing date is set. And when that date comes, the deal is completed and both parties think they got a good deal.
Sounds pretty cut and dry, right? It used to be that this process was as easy as it sounds, deals going through with little trouble and yielding high payouts. Not anymore. Expect complications if you decide to sell your company.
You may think that after ending a business, paying off creditors, and shuttering your windows, that you are finally free from any obligations that stem from the business. However, there are some issues you still need to think about. Lawsuits after a business dissolution are one of them. Here are some tips to handle any that may come your way. Please keep in mind that these are just tips. If you have an actual legal question, please consult an attorney.
Get An Attorney
If you are hit with a lawsuit, make sure that you get an attorney that you can trust and you know will be reliable.
There are many reasons for closing a small business. It may no longer be profitable to continue, you may have found an enticing job offer, or you may just want to cut your losses and avoid incurring additional debt. Whatever your reasons may be for taking down the "open" sign, by the time you are sure you want to call it quits, you are likely looking for a quick and painless exit strategy.
The good news is that you are not alone. You just have search online to find dozens of tips, checklists, and notes of advice to guide you through the process. No matter how you choose to approach it, remember that just as setting up your business takes planning and legal forethought, so will closing it. Here are our picks for top checklists for closing a small business.
Whether you are at the early stages of launching a small business, are facing a legal dilemma, or have decided to throw in the towel and close shop, there usually comes a time in every entrepreneur's tenure when he or she commits to hiring an attorney. If that day is today for you, we congratulate you on taking steps to seek quality legal guidance and offer these tips on how to find the perfect small business attorney.
1. Consider your small business legal needs. Why contact an attorney now? What are specific things you want the attorney to work on? What time frame do you need them by?
Here are some common issues that small businesses engage an attorney for. Some are items that you can file for yourself, and others require legal representation.
- incorporation questions, shareholder and directorate queries, ongoing legal requirements, creating a separate corporate identity to avoid personal liability.
- registering a trademark, patent, or copyright for creative, technical, or unique ideas, logos, brands, and products.
- enforcing protected intellectual property, collecting delinquent payment for goods or services delivered, defending against cases against the business.
- drafting employment contracts, independent contractor agreements, service agreements, liability waivers.
- tax considerations, closing a business, relevant federal, state, municipal codes.
Two weeks ago, the doors of a Rotorua, New Zealand gas station were shuttered. Its owners, rather than cashless, were likely already out of the country with over $2 million their bank accidentally made available to them. Though perhaps bringing a grin to the faces of many small businesses whose recent experience with banks has not involved the dolling out of millions, the case shows us one way, a bad way, to close up shop.
As reported by the New York Times, Leo Gao asked his bank, Westpac Bank, for increased overdraft protection. Instead of $62,000 in overdraft, a slip of a bank teller's finger resulted in $6.2 million being made available to Mr. Gao. Westpac's motto is "Make the most of life." Mr. Gao and his girlfriend Cara Young did just that.
They had been running an ailing gas station. The Guardian reports that after withdrawing as much of the money as they could, the pair told neighbors they were going on holiday, quietly shuttered the gas station, and took off. The manhunt is now reportedly focused on Hong Kong.
