There are many reasons why a business owner might want to transfer a business in Missouri. Perhaps the owner wishes to retire and sell the business to someone else. The owner may be facing health issues or other personal challenges, including financial concerns or partner disputes that are not resolvable. May a new opportunity has popped up and a business owner wants to take that opportunity, but cannot sustain the business without proper and prompt attention. 

Taking the Proper Steps

The reasons for a business owner to desire a business transfer in Missouri are as bountiful as the businesses themselves. It is not, however, a simple process. Some regulations must be followed. We offer below a brief outline of the steps that must be followed to legally transfer ownership of a business in the state of Missouri:

  • Draft a purchase agreement that outlines the terms and conditions of the sale.
  • Conduct due diligence to ensure that the business is in good standing and that no legal or financial issues could pose a problem.
  • Obtain any necessary licenses or permits required for the transfer of ownership.
  • Notify employees, customers, and vendors of the change in ownership.
  • File the necessary paperwork with the Missouri Secretary of State’s office to update the business’s registration information.

There is Always a Catch

Sure, everything might work out perfectly. But then again, what if they don’t? There are several reasons why someone might have a problem transferring a business in the state of Missouri:

  • Legal issues: If the business has any legal issues, such as pending lawsuits or regulatory violations, it may be difficult or impossible to transfer ownership until those issues are resolved.
  • Financial issues: If the business has significant debt or other financial problems, it may be difficult to find a buyer who is willing to take on those liabilities.
  • Lack of preparation: If the current owner has not properly prepared the business for sale, it may be difficult to find a buyer or complete the transfer process.
  • Disputes with partners: If the business is co-owned and there are disputes between partners, it may be difficult to sell the business or transfer ownership.
  • Lack of market demand: If there is little demand for the type of business being sold, it may be difficult to find a buyer willing to pay a fair price.

It’s important to address any potential issues before attempting to transfer a business in Missouri. Seeking the advice of an attorney or other professional can help ensure that the process is handled properly and that all parties are protected.

Remember that the specific steps required to transfer a business can vary depending on the type of business and its legal structure. It’s always a good idea to consult with an attorney or other professional to ensure you follow all legal and regulatory requirements. And it never hurts to have an attorney involved. Brydon, Swearengen, and England have a pool of experts to help you successfully transfer your business.