An escrow agent (also known as a closing agent) is a neutral third party that coordinates the closing of a business sale. As escrow agents, we receive and hold the buyer’s funds and ensure that the necessary closing documents are executed. Using an escrow agent is almost always required where the buyer is purchasing with a loan. Where there is not a loan, the use of an escrow agent is still highly recommended. Our firm offers competitive pricing for our escrow services, and because we are attorneys, we are able to draft legal documents and offer guidance and understanding through the legal issues that frequently arise.
The first and most important step in a business sale is locking the terms in with a purchase and sale agreement. Parties are encouraged to speak with an attorney and a CPA to help them through this process as there are many legal and tax issues involved in the purchase or sale of a business. The most common structures for a business sale are stock purchases and asset purchases. Each one has their own advantages and disadvantages, so it is important to speak with an expert regarding the best option for you.