The road to reach closing is a long and tedious one. As a seller, working with your broker, you have already gone through business pricing, organizing financial documents, and working on the offering package. After all of that, there is still the process of meeting and negotiating with potential buyers with your broker until you have found the right one. Likewise, as a buyer, you have had to work with your broker to sift through business listings to find the right fit for your skillset and one within your budget. Once you find a suitable business, you must begin your own offering and negotiation process. From both sides of the deal, once a deal is agreed to getting to closing is an exciting milestone. However, you are not quite done yet.
Whether you are a buyer or seller, there are so many you should know in order to successfully close the deal. Consider just some of them:
- Schedule due diligence meetings when all participating parties are available.
- Opening bank accounts.
- Obtaining insurance coverage.
- Applying and getting approved for a lease assignment.
- Finalizing the price to reflect prorations of rent, utilities, fees, etc. This is just like a residential real estate closing, mid-month closings require adjustments.
- Prepare corporate documents and government tax forms.
- Review and transfer and necessary contracts and agreements.
- Prepare closing/settlement documents
At the closing, you will either find yourself in your (or their) broker’s office, that of an attorney, or even at home as some closings are virtual! Both parties will review all documentation and begin signing on dotted lines. For instance, some of the documents include:
- Sale agreement
- Loan documents
- Lease assignment agreements
- Non-competition agreements
- Bill of sale
- Forms for transfers of patents, trademarks, copyrights, etc.
- Closing Statement
Once all documents have been signed, wires are often used to disperse funds. And just a reminder, never receive wire instructions via email! There are too many hackers out there.
Congratulations! This ultimately finalizes the deal and the transfer of ownership.
Thankfully, as daunting as this process may seem, your business advisor will be with you during the entire process. Whether you are a buyer or seller, Transworld’s experienced advisors have extensive knowledge and experience of both sides of the deal. If you have any questions, contact Transworld Business Advisors of Knoxville and Chattanooga today.
