Selling a Business: Divestiture Transactions

Contact Neufeld Legal PC for corporate transactional and legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

Selling one's business involves the pursuit of a number of interconnected objectives, including (i) optimizing the sale price, (ii) insuring the completeness of the deal and (iii) limiting the potential for legal liability.

Optimizing the company's sale price typically involves considerable advance work, such that the value of the company is not only readily discernable, but so is its further potential that can be realized from its acquisition and augmentation. Where possible, this is an objective that needs to be actively pursued in advance of prospective suitors investigating the prospect of the business as an acquisition target.

Making sure the transaction is complete and devoid of lose ends, whether from your prior operation of the business or as part of the sales process is important not only to the acquiring party, but also the divesting party, given that as the seller, it is in your financial interest to insure that the acquiring party does not scuttle the deal or significantly devalue the business and thereby decrease the purchase price. To the extent that it is possible to insure that there are no concerns with the business and it can easily transfer to the purchasing party, you will that much better serve.

Finally, there is always the concern of post-transaction legal liability that might arise from legal issues that can be ascribed to causes that pre-date the closing of the transaction. As such, it is particularly important that these aspects be minimized to the greatest extent possible, and the business be cleaned up and completed so as to limit potential legal exposure going forward.

When it comes to the legal component of corporate mergers & acquisitions, that is when the law firm of Neufeld Legal P.C. comes into play. Such that when your company is seeking knowledgeable and experienced legal representation in orchestrating and completing business mergers, acquisitions and divestitures, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.