Transaction Steps for Sale of a Retail Business
Written By: Harpreet Singh
Apr 21, 2015
Below are general steps of the transaction for sale of a business opportunity:
* Escrow Opened & Deposit Made by Buyer.
* Buyer complete its due diligence/inspections and sign lease with landlord.
* Buyer remove purchase agreement contingencies.
* Escrow Instructions signed (by both buyer and seller) and escrow company start its newspaper publication, lien search, and order clearances from State Board of Equalization, Franchise Tax Board, Employment Development Department, County business tax department, and other applicable government departments.
* Buyer at same time apply for ABC license transfer, seller permit, tobacco permit, business license and other permits/licenses applicable.
* Escrow get all clearances and demands from different third parties.
* Buyer make final deposit required by escrow.
* Escrow mail Form 226 to ABC department in regards to show readiness to close the sale and final license transfer.
* Inventory counted and Buyer given possession and keys.
* Once ABC license officially transferred then escrow closes. (usually around 10 days after form 226 sent to ABC)
* At closing, Escrow distributes documents and funds to appropriate parties.
If you have any questions please call us at 209-740-7443 or email us at [email protected]
This article is for general discussion only. It shall establish any agency relationship of any kind unless created in writing with Western Singh Brokers or its agents.