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Items to Consider in Determining Whether to Sell Your Business in 2010
Jeff S. Dinerstein, Arthur M. Nathan
This article highlights the imminent changes to the tax laws in 2011 (e.g., the sunset of the Bush era tax cuts) and changes that will arise in later tax years (e.g., tax provisions contained in certain parts of the recently enacted health care legislation) that may affect a decision to sell your business this year. When business owners contemplate the sale of their business, typical initial questions include where to start, what types of activities are required, and how to negotiate the sale process. In addition to exploring various tax issues that will drive some business owners to sell their businesses in 2010 as opposed to selling in later years, this article outlines many of the steps a business owner should consider to prepare his or her business for sale. These steps include the sale process, the evaluation of a purchase offer, the importance of a confidentiality agreement, the role of a letter of intent, structuring a transaction, and the sale documents that “close” a transaction. Because every transaction is different, the general principles provided in this article must be adapted for your particular business and industry.
The article was originally published as a four-part series of alerts. To read the full article, click on the PDF linked below. For more information, contact: