When selling your company in The Bahamas, you have many business decisions to make. You will need to decide how to price the business, find buyers, do your due diligence, negotiate terms of the sale, and close the transaction. In most cases, you also need a legal agreement memorializing the sale.
Beginning the Sale Process
Maybe someone has approached you about purchasing your business, or maybe you have realized that it is time to sell. Either way, you are ready to begin the sale process. Figuring out how to value your business to receive a competitive price could be tricky. You may want to review your yearly financial statements or do some revenue estimates with the help of an accountant. Also, you could research sales of similar businesses in the area.
Whether you advertise your business for sale or receive an unsolicited offer from a buyer, you will want to do due diligence. You should research the buyer or buyers to find out more about them. This can answer questions about whether they are serious, how much they can afford to pay, and what they will do with the business once they buy it.
Negotiating the Sale
Some business owners prefer to negotiate a sale themselves, while others seek outside help such as consultants or lawyers. If your business is large or high in value, you may want professional help. You might also need help with transitioning to new ownership, such as by transferring property and changing contracts with vendors. The transition process could be subject to negotiation just as are the price and other sale terms.
Memorializing the Sale Agreement and Closing the Sale
Once you reach a tentative agreement with a buyer, it is a good idea to place the agreement in writing. A written agreement protects you if the buyer later backs out of the sale. It also sets forth exactly what you are selling and what the buyer is giving you in return.
Some business sale agreements are in the form of an asset purchase, while others are share purchases or some combination of the two. If you will give up all ownership in the company when the sale closes, one condition of the sale might be that you sell all of your shares in the company too. Or the new owner might want to buy the assets only, not your shares.
After your lawyer or the buyer's lawyer prepares the agreement, you should sit down and make any necessary changes to it before you both sign it. The agreement should describe a timeline for transfer of ownership, including when the sale is final and when you must transfer assets or your shares. The agreement should also explain what is to happen with any employees of the business and who is responsible for any severance payments.
To find out more about selling a company in The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.
The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website. This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.