Legal Briefing: Positioning Your Company for Sale When You Have No (or Poor) Contracts
You’ve operated your business for one year or 50 and you decide that it’s time to sell. The problem is, you don’t use contracts or the form you use is so poorly written that you might as well not have a contract. Reality hits when you seek a valuation of the accounts or start to get offers — or, worse yet, get no offers. You just can’t fathom why others in the industry don’t understand or appreciate the profit you make each year and how happy your customers are. Won’t Throw Money Your Way Here’s why others in the security industry don’t seem to appreciate the value of your operation and won’t be throwing money your way: They aren’t willing to take the risk of a loss and claim, which is infinitely increased without proper contract protection. They are concerned that their errors and omissions carrier will cancel or not renew the E&O policy or increase the premium significantly because of the added risk. They are concerned that their central station will refuse to monitor the ...