Selling your business can be exciting, emotional, and overwhelming. Whether you’re retiring, starting a new venture, or moving on after many years, the legal side is critical. Working with a Cassady Law lawyer ensures your interests are protected, guides you through necessary paperwork and negotiations, and helps you avoid costly mistakes for a smoother, more confident process.
Buyers often bring advisors and have a clear strategy. As the seller, you need clarity on valuation, structure, and obligations before negotiations. Issues often arise because owners sign documents too early without a full understanding. Legal advice before signing, especially the letter of intent, helps prevent expensive surprises. This article covers what to prepare to sell your business successfully with a business lawyer.
The Purpose of a Letter of Intent
A letter of intent (LOI) is a written agreement outlining deal terms before a full purchase agreement is prepared. It usually covers price, timing, sale structure, and buyer due diligence. While some LOI provisions are non-binding, others, such as confidentiality and exclusivity, may be binding. A poorly drafted LOI can impede negotiations, lock you into unfavourable terms, or create legal risks. Cassady Law reviews and negotiates LOIs to serve as action plans protecting your interests.
Share Sale Versus Asset Sale
The type of sale and the sale structure are among the most important decisions in selling a business.
Share Sale
The buyer purchases your company’s shares. The company and its assets, contracts, and liabilities remain, just under new ownership. Share sales can offer tax benefits and are often simpler for customers and employees.
Asset Sale
The buyer selects which assets to buy, such as equipment, inventory, intellectual property, and goodwill. Some liabilities may remain with you, and some contracts or leases may require consent before assignment. Buyers often prefer this structure since they control which obligations to assume.
Choosing the right sales structure depends on taxes, business type, liability, and buyer preferences. Cassady Law helps you weigh the pros and cons to find the best fit for your needs.
Due Diligence For Buyers
Before closing, buyers review your business to ensure it matches expectations. Due diligence includes financial records, corporate filings, contracts, leases, licenses, and disputes. Employment contracts and severance or “successor employer” issues are also examined. A lawyer helps organize these materials and address concerns early, making the buyer more comfortable and supporting your valuation.
How Cassady Law Supports You Through the Sale
Cassady Law guides business owners in New Westminster and the Lower Mainland through every stage of the sale. The firm can:
- Advise you before you list or talk to buyers.
- Review and negotiate the LOI.
- Help you choose between a share sale and an asset sale.
- Draft and negotiate the purchase agreement.
- Coordinate closing and manage post‑closing obligations.
The goal is to minimize liability, protect your business’s value, and reduce dispute risk.
Selling your business is more than a transaction; it’s the transition of years of work and risk. If you are considering selling or are approached by a buyer, consult a Cassady Law business lawyer before signing anything to move forward with clarity and confidence.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. The information provided herein may not reflect the most current legal developments. For personalized legal business advice, please consult with a lawyer at Cassady Law.