Legal Considerations: The Seller's Perspective

By Michelle Collins & Julie King

The seller needs to look at three things, says Velletta:

First and foremost, you want to make sure you get your money.
Secondly, you don't want to make any false claims that you could be held accountable for.
The last consideration is that the buyer's ability to pay any agreed upon vendor or buyback amounts.

Limiting Risk

While there are no guarantees that the business you buy will be successful there are things that you can do to ensure that your chances of success can be improved.

Velletta feels that it is critical for a buyer to make sure all of the information they gather about the business is completely accurate. You should try getting this information from someone who is close to the business, perhaps has shares of their own with the company. If you are not able to get this information then you may want to reconsider this particular business. "Make sure your advisors are well qualified and able to give you the advice."