Tip #105: Are there legal commitments that must be assumed or transferred in the sale of the business?

cartoon about transferring contracts when selling businessLegal commitments such as licenses, permits or contracts can help or hurt the sale of a business. But either way, the seller must understand the process to transfer or assume these commitments. It is not unusual for the process to take time and energy and can slow down or even halt the sale, especially if there are government agencies involved. Business owners must identify these commitments in advance and be prepared to take the steps necessary to make the transfers (possibly using an experienced attorney) and advise any buyers of the steps they will have to take.