When selling any business, be it an App, or website, or shareholding in a business there are several issues of key importance to consider:
- Your confidential information must be properly protected by using an appropriate confidentiality agreement. This ensures the buyer does not misuse the information it has access to during the due diligence process.
- The terms which regulate the sale of the business assets and shares should be carefully scrutinised. Professional advice on these matters is a must.
- Your businesses’ IP is one of its most important assets. The sale documents should carefully address your IP assets. For example, is the business trademark to be assigned to the purchaser or are you just licensing it to the seller for use?
- If you have employees you will also need specialist advice to ensure that you follow the correct procedure for transferring staff and employer liabilities on the sale.
- You should also carefully consider any warranties and indemnities you may be asked to grant during the sale and whether you are able to grant these.
We recommend that well before exiting you business you either commission a pre-sale health check or have an IP audit as to avoid unnecessary stress and delays during the due diligence process.