Selling your business is a big decision. Make the most of this important transaction by hiring professionals you can trust. Capitol City Escrow, Inc. ensures the process goes smoothly by acting as an impartial third party between the seller and buyer and protecting the stakeholders.
As the seller, you can count on us to verify funds received and keep them in safe custody. Contact us today to start discussing your upcoming transaction, and we’ll demonstrate why Capitol City Escrow, Inc. is the only name you need to remember for business escrow services in California.
No matter what industry you’re in or the size of your operation, we aim to deliver the services, resources, and support you need to feel at ease with this major transaction. We look forward to working with you and building a valuable business relationship between your team and ours.
Navigating Business Bulk Sales
Balancing expectations against the real-world value of a business may seem challenging. However, when you rely on our escrow services team to assist with negotiations and contracts, you can expect a simple, successful transaction.
One of the best ways to achieve your selling goals is to consider a business bulk sale, typically used within the retail, wholesale, and manufacturing fields. Under California law, a bulk sale is an agreement for the sale of more than half of the inventory and equipment of a business. It’s measured by fair market value and includes assets that are not part of the seller’s ordinary course of business.
Two major advantages of bulk sales are that they typically have a quicker turnaround and allow you to move all your assets in a single transaction. On the other hand, bulk sales can be limiting since you must include most of your assets, making it difficult to retain inventory. Talk to our business escrow services company to determine whether a bulk sale is right for you and get help navigating the process.
Frequently Asked Questions
What is business escrow, and how does it work?
Business escrow is a financial arrangement where a third party holds and manages funds or assets on behalf of two parties entering a transaction. The funds or assets are held in an escrow account, which is typically managed by a neutral third-party provider called an escrow agent.
When a business transaction occurs, such as the sale of a business or real estate property, the buyer will deposit the purchase price into the escrow account. The money will remain in the account until both parties fulfill all the contractual obligations of the transaction. Once all the obligations have been met, the escrow agent will release the funds to the seller, completing the transaction.
This arrangement provides a level of security for both parties involved in the transaction. The buyer can be confident that their funds are being held securely until the transaction is complete. At the same time, the seller can be assured that they will receive payment once they have fulfilled all their obligations under the contract.
When is business escrow typically used?
Business escrow is typically used when a significant amount of money or assets is exchanged between two parties. Here are some common scenarios when business escrow is used:
Real Estate Transactions
Mergers & Acquisitions
Overall, business escrow is used in situations where there is a high level of risk for both parties and where the transaction involves large sums of money or valuable assets. Escrow services provide a secure way for both parties to transact with one another and ensure that all the transaction conditions are met before any funds or assets change hands.