Module 05 Course Project - Selling Your Business: USE ATTACHMENT TO COMPLETE THIS ASSIGNMENT!!!

Fast forward 5-10 years. Your business is successful after years of hard work and a dedication to ethics and the law. Recently your business garnered quite a bit of attention for the level of success that you achieved by doing business the right way. All of the attention led to prospective buyers eliciting offers to buy your business. Although you love your business, you are starting to realize that you might be ready to move on to something else, whether it be a new venture, a break, or even retirement. After much soul searching, you decided that it is the right time to sell. For this final part of the project you will be selling your business.

For this final part of your project, you will be drafting a Term Sheet/Contract/Agreement to Sell for your business. Conduct Research to locate examples of these types of documents. This is a formal agreement so it needs to be structured in that manner. Your Agreement needs to include the following information:

Names of seller, buyer, and business

Background information

Assets being sold

Purchase price and Allocation of Assets

Covenant Not to Compete

Any adjustments to be made

The Terms of the Agreement and payment terms

List of inventory included in the sale

Any representation and warranties of the seller and buyer (What are the typical warranties made in the course of these transactions?)

Determination as to the access to any business information (Will you be supplying, selling, trade secrets, copyrights, patents, etc.?)

Determination as to the running of the business prior to closing

Contingencies

Fees, including brokers fees

Date of closing