Legal Structures When Selling Your Business
When selling your business, one of the earliest (and most important) decisions is how the transaction will be legally structured. Different legal structures affect you and your business in different ways. Below, we, along with Phoenix-based law firm Osborn Maledon, share the three most common legal structures and the factors that drive which structure may be best for you.
You’ll notice that within each transaction structure there are many nuances and exceptions; this is why we always recommend engaging an experienced legal counsel and tax advisor to advise you on how each structure may affect you. Ideally, your legal counsel will be involved at the Letter of Intent (LOI) stage to help negotiate specific legal structure terms into the LOI. This will help you avoid complications, delays, or re-negotiations later in the transaction.
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