Congratulations! You have spent many years building a successful business in which you are now ready to sell. Selling a company may appear to be a complicated process initially. We recommend you work with our legal document preparer throughout the process to prepare the necessary documents to sell a business. At A People’s Choice, we have helped many business owners sell their businesses throughout California. Depending on your business type, we can help you prepare various needed documents to close the sale such as an Asset Sales Agreement, Entity Sale Agreement, Promissory Note, Security Agreement, UCC Financing Statement, Bill of Sale for Business Assets, Assignment of Lease or Contract, Non-Compete Agreement and many more. Read on to learn how to sell a business in California.

What our Clients Say...
“We love A People’s Choice. It’s legally run and professional. Everyone has to have a recommendation and license. Highly recommended.”
Christy C.
“I recently required the help of A People’s Choice, Inc. and found them to be entirely professional. Everything was done in short order yet all was explained to my satisfaction. They were friendly and courteous. I am happy and impressed.”
C. Zyobel
“Lightning fast response, I had my very simple document on the same day as my order for the very fair and reasonable price compared to my attorney who quoted me 3 weeks and $2500. I will definitely use these folks again and highly recommend them!”
L. Carnes
“A People’s Choice is a great option to get legal documents prepared inexpensively. They offer a very professional, low cost service for all sorts of legal paperwork. You won’t be disappointed and will save lots of money as compared to using an expensive attorney!”
Kathryn R.
“A People’s Choice is extremely customer orientated and friendly. Their service was fast and reliable. in the future, should I need their services again, I will not hesitate to call them. All e-mails were answered with either a phone call or e-mail sometimes even late at night”
“Very professional, excellent follow up and easy to work with. I will recommend them often! The staff rocks!”
Gene A.
“This company is excellent! They helped me get through all of my paperwork, submitted it to the court, and now everything is complete. Everything was clear and almost too easy. I saved thousands of dollars!”
Seth M.
“I had the opportunity to use A People’s Choice again, Wow doesn’t say enough for the way the staff was able to get me in and out and all my answers answered. Very Professional, Organized and Friendly. I highly recommend!”
Debbie E.
“A People’s Choice prepares legal documents so you can represent yourself and still look like you know what you’re doing. I utilized their services recently and found them to be professional as well as extremely helpful. I couldn’t be happier.”
Evan J.
“I needed help understanding and filling out legal documents but I didn’t have enough money to pay for an attorney. I would highly recommend A People’s Choice for your legal documents as you will get outstanding service at an affordable price. “
Sharon B.
“The service provided by A People’s Choice was very professional and comprehensive. We have used A People’s Choice on a previous occasion and were completely satisfied. We would highly recommend A People’s Choice to anyone!”
R. Betancourt
“Extremely satisfied with the performance of A People’s Choice. The communication was excellent and all was handled in a timely efficient manner.”
Pam T.
“A People’s Choice – Saved me time, money & hardship. The people are professional and a pleasure to work with, I totally recommend them to everyone! I will used them for all my legal documents in the future. Thank you!”
C. Lazalde
“A People’s Choice is a business that delivers what they promise. I was treated like a VIP by their staff and Sandy was the best. As for their services, they promptly delivered all of the official documents and fillings on my behalf and their price is more than reasonable.
Juan B.
“I highly recommend A People’s Choice. The customer service and professionalism are exceptional. This service is only a fraction of the cost, more responsive, and better suited to quickly completing complicated court forms. “
Linda F.
“I was very happy with the service received. They were extremely responsive by phone and email and completed the document in less than 24 hours! All questions were answered promptly. I would highly recommend this service to anyone needing a legal document prepared!”
“A People’s Choice is awesome! They made the legal documentation process painless. I highly recommend A People’s Choice. The name says it all.”
Eric J.
“This team is efficient, professional, ethical and easy to work with. Any of my questions were responded to immediately. They did everything they could to help me. I highly recommend their services.”
Leigh A.
“My wife and I needed to have some papers filed in court but found that traditional lawyers were quite expensive. They did a very professional job completing our paperwork and I might say, at a very reasonable price.”
D. Hileman
“I Recently used A PEOPLE’S CHOICE !!!! This service is absolutely AMAZING !!!! At first I was so confused , but after their process was explained to me , everything worked exactly the way they Said it would & they are there to help with the process. every step of the way , as promised. I would recommend this service 100% based on them being so efficient, professional, and always available to address any concerns that you may have . I appreciate the work that they did for me . THANKS !!!!
R. Ivey
“I was in need of some serious help and didn’t know what to do. I had contacted a lawyer and he wanted to charge me $1800.00. A People’s Choice got my paper work started and at a much lower cost. I am very grateful for the company’s services.
April R.
“How much is peace of mind worth to you? This company of hardworking, caring individuals will help you get the job done in the quickest, most efficient way. Conveniently located. Check it out. Thank you!”
Diana K.
“Made the process so easy for me. Also VERY prompt replies through email. So glad I used their services.”
Kristina C.
“I am glad I chose A People’s Choice. They were very friendly and helped me with my documents in a very efficient way in very little time. Give them a try and you will be writing a positive review just as I did.”
D. Buelna
“I can’t say enough about the level of service and professionalism I received working with A People’s Choice. Emails were always responded to quickly and thoughtfully. I ended up saving a lot of money by going with A People’s Choice over an attorney.”
M. Rice
“Great service. Highly professional and efficient creating legal documents. I am completely satisfied and highly recommend them to others. People who are looking for professional legal services look no further, try A People’s Choice.”
Radtech N.
“I have worked with A People’s Choice since September 2013. They are very knowledgeable and experienced. Their work is done professionally and timely. They showed a real concern for my situation. I recommend you give them the opportunity.”
D. Echeverra

Get Help with Legal Documents
To Sell your California Business!

  • or call 1-800-747-2780

  • Hidden
  • This field is for validation purposes and should be left unchanged.

Using a Business Broker to Sell a Business

Before you sell a business, you may decide to work with a business broker once you obtain your business valuation. In the first place, a business broker will help you focus your time on managing your business why he/she works on selling it for the highest price. Here are some pros and cons of using a business broker to sell a business.

Advantages of Using a Business Broker to Sell a Business

  • Help Valuing the Business. A business broker usually has a lot of knowledge about what businesses are worth.
  • Help Marketing the Business. A business broker can market the business in a manner that is attractive to potential buyers.
  • company Much like a real estate agent, a business broker knows how to attract potential buyers.
  • Confidentiality. Often a business owner wants to keep the sale of the business confidential. A business broker can make sure competitors, employees, suppliers, and others are not made aware that the company is up for sale.
  • Evaluating the Intent of Buyer. Business brokers can weed out buyers who aren’t really serious or qualified to buy.
  • Ability to Convert Interest in Buying a Business into an Actual Sale. Business brokers can help to create competition among potential business buyers, making suggested changes to an offer so that is it more likely to be accepted.
  • Service as an Intermediary. A business broker can act as a middleman between a buyer and a seller.
  • Expertise in Business Sales. A business broker knows all the required details to successfully close the sale of a business.

Disadvantages of Using a Business Broker to Sell a Business

  • One-Sided Interest. A business broker typically represents the seller. As a result, the broker’s interests do not take into consideration what may be in the best interest of the buyer.
  • The Broker Fee. A business broker’s fee is usually based on 6-10% of the business sales price. Depending on the cost of the business, this can be a hefty fee.
  • Competency of Brokers Vary. Make sure you find a business broker with experience and a good reputation. It is not uncommon to see people with little knowledge or expertise representing themselves to be a business broker.
  • The incentive to Sell Low. Since a business broker gets paid their commission when there is a sale, there may be an inclination to undervalue a business to sell it quickly. For example, the difference between selling a company for $400,000 versus $500,000 based on a 6% commission is only $6,000. On the other hand, for the seller, it’s a difference of $94,000! Keep this in mind.

Obtain a Business Valuation Before Your Sell a Business

First and foremost, obtain a business valuation, so you know a reasonable price to sell your business. In the event you don’t know how to value the company, you may need to talk with an accountant. Keep in mind, many different methods can be used to evaluate a business. Before you sell a business, take time to make sure all your business procedures are clearly defined, and there are successful systems in place. These essential steps will maximize your business valuation.

  • Using Market Approach – The foundation of this approach is that the more money a business makes, the more it is worth. In this regard, there is a high demand for a profitable business that has few assets.
  • Using Adjusted Net Income – The value of a business can also be based on the adjusted net income of the company. The Adjusted Net Income is a figure that includes business profits and the owner’s salary. However, this figure also includes all other cash-related benefits such as health insurance, company care, auto insurance, gym memberships, etc. which the principals enjoy.
  • Using Multiplier Method – The multiplier of adjusted net value values the business based on behavior in the market. In this instance, you can calculate the business value based on what people have paid for similar small businesses. A low-risk business with high market demand could have a higher multiple than a business where a buyer assumes higher risk. A lower multiple could be due to a business with lower market demand. On the other hand, a highly sought-after profitable company could have a price of four times the business annual net profit. More commonly available businesses, such as restaurants, typically have a sales price based on a one or two “multiple” because these types of businesses are often available for sale. Supply and demand of a particular industry can have a direct correlation to the multiplier used to value the company.
  • Terms of Sale Affect Business Value – The selling terms often affect the calculation of the business sales price. For example, when a seller demands all cash, they may only receive 60% to 80% of their asking price. This is in contrast to a potentially higher amount a buyer would have been willing to pay with a down payment and the ability to finance the balance. Creative business purchase terms usually result in the seller getting a higher price for the business as well as a faster sale.

Lastly, speak with a tax advisor so you will know the best time of year to sell your business. In addition, create a budget so you know precisely how each profit obtained from the sale of your business will be utilized.

Documents Required to Sell a Business

Once you have a willing buyer, the step in selling your business in California is to draft a letter of intent. The letter should address the preliminary purchase price (the final sale price will industry through negotiations), the scope and structure of the transaction, confidentiality between the parties, and a mutual obligation for both parties to act in good faith.

Once you and the buyer finalize negotiations, the seller must create a contract that outlines the terms of sale and complete the buy-sell transaction. Depending on the type of business you are selling, you may need an Entity Sale Agreement or an Asset Sales Agreement. Furthermore, if you are financing part of the purchase price, you may need a Security Agreement for Asset Sale, a UCC Financing Statement and a Promissory Note. Sometimes the seller will need to sign an Assignment of Lease or other Contracts. Moreover,  the buyer may want the seller to sign a Covenant Not to Compete. These documents can be prepared for you with the help of A People’s Choice. Finally, sellers usually need to provide an accountant with a copy of business tax returns and a list of all company equipment, assets, and debts.

Contact us today to find out more about the legal document services we provide to business owners looking to sell their company. We can show you how to save money and protect your business throughout the process. Call us today at 800-747-2780.

Get help with your Legal documents today!

A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney!

Was this article helpful? We would love to know your thoughts! If you found this article helpful, please check the LIKE button below. Your feedback helps us plan topics for future articles.