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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