Acquisition Advisors | You Can’t Sell Ownership to Just Anyone
Selling or buying a company? Acquisition Advisors’ experience spans many industries: manufacturing, distribution, energy, industrial services, petrochemicals, automotive, banking, software, technology, staffing, agriculture, food, retail, consumer goods and service industries.
Acquisition Advisors, Advisor for Sellers, Advisor for Buyers, Advisor of Choice for Sellers and Buyers, Mid-Size U.S. Companies, Tulsa acquisitions, acquisitions in Oklahoma, Business Buyer Assistance, Business Seller Assistance, Management Buyout Assistance, Business Valuation, Exit and Divesture: Strategy Planning, Value Enhancement Planning, Business Purchase, Business Sale, Business Valuation
4434
post-template-default,single,single-post,postid-4434,single-format-standard,ajax_leftright,page_not_loaded,,qode-theme-ver-6.1,wpb-js-composer js-comp-ver-4.3.5,vc_responsive

16 Jun You Can’t Sell Ownership to Just Anyone

Among the many issues to consider when selling ownership in your business is whom you sell to. Sell to an unsophisticated buyer with limited net worth and you’re asking for trouble. He or she might be able to rescind the transaction on legal grounds because there are rules about who qualifies for buying stock or other equity interests, particularly in a closely held business. You should take great caution before you sell ownership to anyone who does not meet the following criteria:

1. Is sufficiently sophisticated and knowledgeable in business affairs, so as to understand risks of the business and the investment.

2. Is represented by a knowledgeable investment adviser and lawyer.

3. Understands restrictions on the private stock.

4. Has sufficient financial capacity (net worth) to absorb any loss in the investment.

5. Always use a lawyer experienced in securities transactions when you sell stock and equity interests in a business.

No Comments

Post A Comment

Spam Prevention *