Disclaimer: The following is for informational purposes only and does not constitute legal or financial advice. If you require guidance on cross-border trade matters, please consult a qualified professional.
If you're a business owner in Ontario considering selling your company, preparation is key. Buyers will conduct due diligence, and the smoother the process, the more attractive your business becomes.
Here’s a simple legal checklist to help you get ready:
Review Your Corporate Structure - Ensure your company’s legal structure is clear, and all records (like shareholder agreements and corporate filings) are up to date. Buyers want certainty, and missing documents can delay or derail a deal.
Organize Financial & Tax Records - Accurate financial statements, tax returns, and any government filings should be ready for review. Buyers will want a clear picture of your business's financial health.
Assess Your Contracts & Agreements - Review customer, supplier, lease, and employee agreements. Are they up to date? Do they contain clauses that might complicate a sale, such as change-of-control provisions? Addressing these in advance can prevent last-minute surprises.
Intellectual Property & Licensing - If your business owns trademarks, patents, or other intellectual property, ensure they are properly registered and assigned to the right entity. Licensing agreements should also be reviewed for any restrictions on transfers.
Employment & HR Matters - Confirm that employment agreements, contractor arrangements, and workplace policies comply with Ontario employment laws. Buyers will want to know if there are potential liabilities related to employees.
Regulatory Compliance - Ensure your business complies with industry regulations, environmental laws, privacy laws, and licensing requirements. Any unresolved issues could slow down negotiations.
Liabilities & Litigation - If there are any outstanding legal disputes or liabilities, have a strategy for addressing them. Buyers will conduct their own risk assessments, and unresolved issues can impact the deal structure or valuation.
Why Preparation Matters
A well-prepared business attracts stronger buyers and better offers. Taking proactive steps can also speed up the process and reduce the risk of unexpected roadblocks.
If you're considering selling your business and want to ensure a smooth transaction, having legal guidance early can make a big difference. Planning ahead helps protect your interests and maximizes your deal’s success.