The short answer is no you are not legally required to use an escrow when selling your business.  Escrow is a process where a neutral 3rd party oversees the transaction and provides assurance that no funds or title will exchange hands until all of the instructions in the transaction have been followed. 

The escrow agent’s job is to follow the escrow agreement, hold any deposited funds and manage the documents until the change of ownership is complete.  The escrow services are usually […] Continue Reading…

The process of selling your business is a very emotional test for any business owner.  A business is a living creature that ebbs and flows daily with internal and external influences.  The challenge is to successfully manage this creature through day to day operations while going through the selling process.  It’s not just the time requirements but it is the emotional focus that I see owner’s have hard time with during escrow. 

Most entrepreneurs have a love/hate relationship with their […] Continue Reading…

Maybe the best place to start defining a MOU (Memo of Understanding) or LOI (Letter of Intent) is by explaining what it is not.  It is not a contract and thus legally binding but more like an outline to a potential offer. It’s like getting a coffee with someone your interested in dating.  Is that coffee a date or just a meeting will really depend upon where it goes from there.  For me, it’s more like my personal […] Continue Reading…

I have always enjoyed playing all kinds of sports since I was little and was one of those kids who were good at most sports but great at none.  I was usually picked be on the team but when it came down to the last minutes of the game, I was not the one that the coach gave the ball too.   As I grow older I have had to shift from contact sports to more […] Continue Reading…

Let’s start off by saying that there is “selling” your business and then there is “getting paid” for your business.  Right now business owners are having a hard time collecting money on a day to day basis and it’s no different when it comes to collecting on the sale of your business.   As I have said numerous times before it’s not the selling price of your business but your after-tax, cash collected, money you received, that defines […] Continue Reading…