Why a Good Attorney Is Non-Negotiable When Selling Your Business
You would not build a factory without an engineer. Do not sell a business without a competent commercial attorney. The sale agreement is the document that turns a handshake into a protected, enforceable outcome, and its wording governs what happens if anything goes wrong.
What the legals actually protect
- Warranties and indemnities: what you are promising, and what you are on the hook for afterwards.
- Payment terms and security, especially where part of the price is deferred or tied to an earn-out.
- Restraints of trade, employee transfers, lease cessions, and supplier consents.
- The precise definition of what is being sold: assets, shares, stock, debtors.
The broker and attorney work together
A broker structures and drives the commercial deal. The attorney makes it watertight. The two roles are complementary, not competing, and when they work in tandem, as they do on well-run Aldes transactions, deals close faster and with far fewer nasty surprises after signature.
A false economy to avoid
Skimping on legal advice to save a few thousand rand on a multi-million-rand deal is the definition of false economy. The right attorney pays for themselves many times over the first time a dispute is quietly avoided.
Use a commercial specialist, not a generalist
Not every attorney is the right attorney. Business sales carry their own conventions, risks, and drafting quirks, and a lawyer who handles them regularly will move faster and protect you better than a capable generalist learning on your deal. A broker who has closed many transactions can point you to attorneys who genuinely know this terrain.
Bring your attorney in early, ideally before you sign anything, even a letter of intent. Terms agreed in principle are far harder to unwind later, and an early legal eye stops well-meaning handshakes from boxing you in.
Whether you are considering selling your business, need a professional business valuation, or are looking for your next acquisition opportunity, our experienced business brokers are here to assist. Contact us at aldes@aldes.co.za or visit www.aldes.co.za to take the next step.