Important Steps for Selling Your Business in Texas

AdobeStock_520992702-300x170For many business owners, there comes a day when it is time to sell their company. When it is your time to sell our business, make sure that you have a Texas M&A attorney by your side to ensure you take all steps necessary to protect your interests and maximize the value of your business.

Your business may be worth more than just the total value of their assets, and this may impact how you sell your business. You will need to decide whether you want your sale to be an asset sale, where you sell the business’s assets but not the entity that owns them, or an ownership sale, where you sell your ownership stake in the entity, which continues to own all of the assets.

Preparing for the Sale of a Business

Before a person can sell their business, they should gather all of the critical documents related to your business, determine the value of the business, and decide on a sales price. Prospective buyers will often be seeking such information as three years of profit and loss (P&L) financial statements, three years of tax returns, any lease agreements or other significant contracts for the business, a balance sheet, three years of bank statements, any additional bank records, a list of the business’s assets, such as inventory or equipment transferable with the business, and a business or owner bio.

Additional information could include sales information, accounts receivable or payable, licenses or contracts, and staff bios, information, and pay details. A Texas M&A lawyer can help you prepare for the sale of your business so that you can be ready for the buyer’s questions and requests for information.

Create a Confidential Information Memorandum

As you prepare for the sale of your business, you may want to put together a Confidential Information Memorandum (CIM).  A CIM is a document that conveys important information about a business for sale, including its operations, financial statements, management team, and other data for a prospective buyer. A CIM often includes an executive summary, an investment thesis, an overview of the market, an overview of the target company, products and services, a revenue profile, an employee profile, a customer profile, various financials including historical and projections, and a management structure.

List the Business

People often have multiple options for selling a business, and a business broker is one common solution when people are unsure how to publicize the sale of their business. It is also possible to sell a business through an online group, to a larger network of personal connections, using the local chamber of commerce, through social media or local media, at an investment bank, or certain online listing websites.

Common websites used for business sales include BizBuySell, BizQuest,, Exit Adviser, GlobalBX,,, BusinessMart, and Flippa.

Get a Non-Disclosure Agreement (NDA) When You List Confidentially

For a variety of reasons, you may not want to publicize the fact that your business is for sale.  Instead, you can list your business confidentially, by not giving prospective buyers enough information to identify you or your business and only giving them enough information to decide whether they might want to buy your business.  Consult with a Texas M&A attorney to create an NDA so that, when you are ready to share more information with the prospective buyer, you can protect your confidentiality. When a buyer inquires about your listing, you can send them the NDA to sign before you provide any confidential information.

If you want to be proceed confidentially, be sure not to use your business email to communicate with prospective buyers. A buyer can learn more about your business than you are ready to share if they have your business email, especially if it includes your name or the business’s name.

Send the CIM and P&L Statements to Potential Buyers

After a buyer inquires and signs your NDA, you can provide them with information about your business and ask them for any questions they might have. Answer their questions and see if they want to meet in person to discuss the opportunity.  You may want to consult with a Texas M&A attorney to figure out the best strategy to answer these questions, so that you can maximize the value of your business and the number of interested buyers.

Generally, this is not the stage of the sale to give a prospective buyer you tax returns. Tax returns are usually reserved for the due diligence period following several meetings to help secure an offer.

Meet With Your Potential Buyer

When you have provided all of the necessary information and a prospective buyer remains interested, you may want to set up an in-person meeting. After the meeting and once the buyer has answers to all of their initial questions, the buyer will either submit an offer or decline to take any further action.

When you receive an offer, you may want to negotiate a final sale price. A Texas M&A attorney will help you through the negotiation process, while also making sure that you are protecting yourself and your interests.

Call Us Today to Speak with a Texas M&A Attorney

Are you considering selling your business in Texas? You will want to be sure that you have a skilled Texas M&A attorney working to ensure that you are able to get the best possible offer that will adequately compensate you for your years of hard work.

Structure Law Group helps clients all over Texas achieve the best possible outcomes to the sales of their businesses. You can call (512) 881-7500 or contact us online to schedule a consultation with our Texas M&A attorney.