8. Concluding the Transaction
After the negotiations are over, it is time to sign the sale/purchase contract. Collaborate with your broker, lawyer, or accountant to make sure everything is ready.
The contract will be signed at the escrow office, following the instructions given at the opening of the escrow account. The escrow officer will confirm all the obligations listed in the cover letter and escrow instructions. Then, you and the buyer will sign the necessary documents. This is the moment when the business’ transfer starts. This includes:
- Checking that all the conditions (stipulated in the sale/purchase contract) necessary for the business to continue to operate under the same conditions after the transfer to the buyer are fulfilled. This includes:
- transfer of contracts, clients, suppliers, employees, etc
- obtaining permits, approvals, attestations (as required)
- the transfer of the necessary rental contracts for the property
- other conditions specific to each business (stipulated in the instructions)
- Distribution of authorized instruction funds, including commissions and other financial entitlements:
- the financial centralizer is being drafted;
- this centralizer is a complex document that regulates all payments made in advance by the seller and payments to be made by the buyer after closing the business transfer;
- for these reasons, the price negotiated for a particular business will always be higher or lower in the end, depending on the particularities of the transaction.
The escrow account closes when all buyer’s and seller’s instructions stipulated in the sale/purchase agreement and its attachments have been made.
Immediately after the closing of the transaction, the buyer will need to receive all the information necessary to take over your business’ activity, such as: computers’ passwords and online access codes; alarm codes; combinations from safe boxes; customer and distributors lists; keys to doors, cars, and cabinets; operating manuals for the equipment; your personal contact information.
And so, the transfer is over. Your business now belongs to the buyer, and you can start a new chapter in your life (or a new business).