Contracts, Leases, and Liabilities to Review Before Listing

Contracts, Leases, and Liabilities to Review Before Listing

Before putting your business on the market, it’s crucial to review all contracts, leases, and liabilities to ensure a smooth sale and maximize value. Understanding these elements helps you avoid surprises and builds trust with potential buyers.

Key Areas to Review

1. Customer and Supplier Contracts

Review agreements with key customers and suppliers to confirm:

  • Terms are clear and transferable

  • There are no pending disputes

  • The contracts add value to your business

2. Employee Agreements

Check employment contracts, non-compete clauses, and benefits. Buyers want clarity on staffing and potential liabilities.

3. Leases and Property Agreements

If your business operates in a leased facility, review:

  • Lease duration and renewal terms

  • Rent escalations

  • Transferability clauses

4. Outstanding Liabilities

Make a list of all debts, loans, or pending legal obligations. Being transparent with buyers builds trust and avoids deal delays.

5. Insurance Policies

Review policies for property, liability, and workers’ compensation. Buyers will want to see coverage and claim history.

Why It Matters

Having contracts and liabilities organized:

  • Increases buyer confidence

  • Speeds up due diligence

  • Can positively impact your asking price

How BizBroker+ Can Help

At BizBroker+, we help sellers prepare their business for listing by reviewing contracts, leases, and liabilities. Our team ensures your business is presented professionally and maximizes buyer interest.

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