What must a client do in preparation of selling his or her business?
New Jersey business transactions attorney, Harold I. Steinbach, discusses his due diligence checklist, like corporate set-up, major contracts, patents, IP, tax returns and other things sellers must have.
Email: [email protected]
Phone: (201) 525-1990
Any sophisticated buyer will present what’s called a due diligence checklist but even if not and I represent the seller, I’m going to give that to them. So the due diligence checklist we know there are several areas that buyers are interested in. They’re interested in the corporate setup, the minutes, bylaws. They’re interested in the major contracts they have. They’re interested in patents. They’re interested in IP. They’re interested in tax returns, financials. I mean there are a number of categories, so we will tell the seller they have to have this all organized. In the old days, we used to set up what’s called the war room, I’m already an old-timer, we used to have boxes in the lawyer’s offices and etcetera. Now people use Dropbox or not to plug them, you know a virtual dropbox. However you do it, you need to set up a system where documents are available, and then we have to limit how and when we can give them to the buyer. But I insist that I get what I want up front, not pulling teeth, I need to know everything as early as possible.