E351: 6 Legal Steps You Should Take to Prepare Your Business for Sale

We've talked about buying and selling e-commerce businesses before, but in this episode, we are joined by a respected lawyer in the field who will help us understand the technicalities of the legal side of the process. John Di Giacomo is a partner at Revision Legal and is also an adjunct professor of law at Michigan University. He is an expert in intellectual property law, corporate law, internet law, and international law. His expertise and his 11-year experience in e-commerce make John highly sought after by entrepreneurs who are looking to buy or sell their online businesses. In this episode, we delve into the nitty-gritty of the process so you can be guided. Timestamps Introduction to John Di Giacomo - 3:03 Why and when you should prepare your business for sale - 4:40 Cleaning up your financial records - 5:35 The importance of separating different lines of your business - 7:35 The value of a valuation analysis - 9:00 How tax prepping helped me sell ColorIt more smoothly - 14:54 Cleaning up your cap tables - 16:08 Supplier price readjustments during the turnover - 21:44 Taking account of your business' intellectual property rights - 26:55 Disclosing your loans during negotiation - 29:23 Identifying the terms for post-deal participation - 32:33 How we're doing with inbox zero - 40:18 I want to thank John for his time in recording this episode with me. If you want to reach out to him, you can visit their official website or email him at [email protected]. EcomCrew is also doing a survey about the Best Amazon Software of 2020. Help us out by answering just 4 questions at ecomcrew.com/vote. As a thank you for doing so, we'll give you a chance to win an annual subscription of EcomCrew Premium--a prize that's valued at $1999! If you're already a member, we'll extend your membership for another year for free if you get chosen. If you like this episode, please don't forget to leave us a review over on iTunes if you haven't already. Until next time, happy selling!