If you are planning to sell your Nevada business, finding the right buyer is only part of the equation. What you do before you go to market determines how much you actually walk away with and whether the deal closes at all.
At Michaelson Law, we have spent over 25 years helping Nevada business owners navigate the sale process from start to finish. Here are the eight areas we advise every seller to address before going to market.
1. Business Structure and Taxes
How your business is structured — LLC, S-Corp, C-Corp — directly affects how the sale is taxed. This needs to be evaluated before you negotiate deal terms, not after.
2. Clean Financials and an Operations Manual
Buyers want a business that runs without you. Three years of organized financials and a documented operations manual reduce buyer risk and strengthen your negotiating position.
3. Key Employee Agreements
Will your key people stay after the sale? Golden handcuff arrangements give critical employees a financial reason to stay through the transition and protect your valuation in the process.
4. Non-Compete and Non-Solicitation Agreements
The buyer will ask you to sign a non-compete. Under Nevada law, these agreements must meet specific requirements to be enforceable. Understanding exactly what you are agreeing to before you sign is essential.
5. Non-Disclosure Agreements
Before sharing financials, client lists, or operational details with any prospective buyer, an NDA must be in place. This step is often skipped in early conversations and it should not be.
6. Intellectual Property
Trademarks, trade secrets, and proprietary processes must be clearly documented and transferable. Ambiguity around intellectual property is one of the most common causes of deal delays and price reductions.
7. Pending Litigation and Liabilities
Buyers will identify unresolved legal issues during due diligence. Addressing them before you go to market keeps you in a stronger negotiating position.
8. Partner Alignment
Do all owners agree on selling? On price and terms? Unresolved disagreements between partners can surface during negotiations and derail a deal entirely. These conversations need to happen early.
Each of these areas affects your valuation, your deal certainty, or your net proceeds. The earlier they are addressed, the better your outcome will be.
If you are considering selling your Nevada business, contact Michaelson Law to schedule a consultation. We will help you prepare the right way from the start.
This article is for informational purposes only and does not constitute legal advice.