Legal Question in Business Law in California

$5.00. Use a bar napkin.

It's entirely up to you how you determine the price, but you need someone willing to pay it. The important thing is that, after you and the buyer have agreed on terms, you get a competent attorney to write it all down for you in contract form and sign before money or property changes hands.

There are brokers who specialize in the sale and purchase of businesses, and they might be able to give you advice about price and terms, as well as finding you a buyer. Do a search for your local area and interview several to see what they would charge you.

The following is an SBA checklist of items that should be addressed in any business purchase/sale agreement:

Names of Seller, Buyer, and Business

Background information

Assets being sold

Purchase price and Allocation of Assets

Covenant Not to Compete

Any adjustments to be made

The Terms of the Agreement and payment terms

List of inventory included in the sale

Compliance with the Bulk Sales laws of the state

Any representation and warranties of the seller

Any representation and warranties of the buyer

Determination as to the access to any business information

Determination as to the running of the business prior to closing

Contingencies

Possibilities of having the seller continue as a consultant

Fees, including brokers fees

Date of closing

You should expect to pay at least 1% of the purchase price or $1,000, whichever is more, for an attorney to produce the agreement and other related documents. This is a good investment.

Contact: If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at [email protected].