Selling a corporation is a complex process, but it is possible. Understanding the different options available and the steps involved in a corporate sale can help you make the right decision for your circumstances. In this article, we will answer the question: “Can you sell a corporation?” and provide guidance on the different types of sale, the steps involved, and what to consider when selling a corporation.

Can You Sell a Corporation?

The answer is yes – corporations can be sold. A sale of a corporation’s stock is straightforward, and shareholders can trade their stock certificates for money or property. However, there are different types of sale and a range of steps that must be taken to ensure a successful transaction.

Types of Sale

When selling a corporation, the type of sale will vary depending on the goal of the seller. The two main types of sale are:

  • Asset sale – in an asset sale, shareholders keep the corporate entity but sell the assets owned by the corporation.
  • Stock sale – in a stock sale, shareholders transfer the corporation by selling the corporate stock.

In an asset sale, the buyer acquires the assets without assuming any liabilities, while in a stock sale, the buyer takes on the liabilities of the corporation.

Steps to Selling a Corporation

When selling a corporation, there are a number of steps that must be taken to ensure a successful transaction. These include:

  • Valuing the business – the value of the business is determined by assessing the assets and liabilities, as well as the future potential of the business.
  • Marketing the business – the business should be marketed to potential buyers in order to attract a good offer.
  • Finding a buyer – potential buyers must be identified and contacted in order to negotiate a sale.
  • Conducting due diligence – the buyer will need to investigate the business to ensure that it is a suitable investment.
  • Negotiating the sale – the buyer and seller must negotiate the terms of the sale to ensure that both parties are satisfied.

Considerations when Selling a Corporation

When selling a corporation, there is a natural tension between buyer and seller. Sellers tend to overestimate the value of their business, while buyers are keen to drive down the purchase price. It is important to ensure that both parties are satisfied with the terms of the sale.

You don’t have to use a broker to sell your business. Handling the sale yourself will save the cost of a broker’s commission (typically 10 percent of the sale price). However, a broker can help to ensure that the sale is conducted in a professional manner and can make the process much easier.

Conclusion

Yes, you can sell a corporation. There are different types of sale, and the steps involved in selling a corporation include valuing the business, marketing it, finding a buyer, conducting due diligence, and negotiating the sale. When selling a corporation, it is important to ensure that both the buyer and seller are satisfied with the terms of the sale.

If you have questions about selling a corporation, Atlantabusinesses.com is a great resource for answers. Their expert business brokers can provide guidance and advice on the entire process.

What are the results of selling a corporation?

A sale of a corporation’s stock is a straightforward process; the stockholders exchange their stock certificates for money or other assets, while the corporation retains all of its assets and liabilities. The only difference is that the identity of the stockholders is altered.

What is the best way to go about selling my S Corp business?


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Have the buyer sign the stock transfer agreement. …
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Transfer the shares of the S corp to the buyer. …
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File the necessary documents with the relevant state authorities to complete
the sale of the S corp.

Create a contract for sale between you as the representative of the S corp and the purchaser. Sign the agreement. Receive the money from the purchaser as outlined in the contract. Prepare a stock transfer document and have the buyer sign it. Transfer the S corp’s shares to the buyer. Register the necessary paperwork with the corresponding state agency to complete the sale.

Who is the owner of the funds within a corporation?

What occurs when a corporation liquidates all its possessions?

In an asset sale, the seller retains ownership of the company, but does not maintain any control over the sold assets. The buyer does not take on any liabilities, and the assets are transferred to them.