Selling your company in Nova Scotia involves several steps, and it is highly recommended to seek the guidance of a lawyer, accountant, or business advisor to ensure a smooth and successful transaction. Here is an outline of the process:
1. Prepare your business for sale: Before putting your company on the market, make sure it is in the best possible shape. This may include improving financial records, resolving outstanding legal issues, optimizing operations, and ensuring all necessary licenses and permits are up to date.
2. Get a Valuation: Determine the fair market value of your company. This can be done by consulting with a professional business valuator or using industry-specific valuation methods. Factors that influence your company’s value may include financial performance, assets, liabilities, growth potential, and market conditions.
3. Create a sales package: Prepare a comprehensive information package that highlights your company’s strengths and achievements, including historical and projected financial statements, a list of assets and liabilities, details about key employees, and information about clients and suppliers.
4. Market your business: Engage a business broker or use various marketing channels (online platforms, industry associations, or personal networks) to find potential buyers for your company. Ensure confidentiality by requiring interested parties to sign a non-disclosure agreement before sharing sensitive information.
5. Negotiate terms: Once you find a potential buyer, negotiate the terms of the sale, including price, payment structure, transition period, and any contingencies. It is crucial to involve a lawyer in this stage to draft and review legal documents, such as the Letter of Intent and Share Purchase Agreement.
6. Due diligence: The buyer will likely conduct due diligence to verify the information provided and assess potential risks. This may involve reviewing financial records, contracts, legal compliance, and other relevant aspects of your company. Cooperate with the buyer during this process and provide any necessary documentation.
7. Closing the transaction: After completing due diligence and finalizing the terms of the sale, both parties will sign the Share Purchase Agreement and any other required legal documents. The buyer will transfer the agreed-upon payment, and ownership of the company will be transferred to the new owner.
8. Post-sale transition: Depending on the terms of the sale, you may be involved in a transition period to help the new owner understand the business and ensure a smooth handover. This may include training, introductions to clients and suppliers, or ongoing consulting for a specified period.
Remember, selling a company can be a complex process, and it is essential to involve experienced professionals to help you navigate the legal, financial, and operational aspects of the transaction.