Social media accounts, such as Twitter and Facebook pages, can help drive traffic to a business. As such, if you are preparing to sell the business, the buyer may be wondering whether any accounts associated with the business will be turned over to them. This helps them avoid having to start over and develop a brand-new friends or followers list. Here is some information you need to know about business and personal social media accounts when selling a business.
A Contract Should State if Social Media Accounts Are Included or Excluded From the Sale
When a contract is drawn up to sell your business, it should specifically state if the social media accounts are included or excluded from the sale. If you do not want them included, you need to specifically exclude them. If not specifically excluded, there may be a presumption that they are included, especially if you are selling the name and trademark to your business. If you are including the social media accounts, you should always provide a full list of the accounts that are included and any that you are excluding because they are your personal sites. For example, you may wish to include a business Facebook page, but exclude your personal YouTube page, even though you have talked about the business on it.
Social Media Accounts Are Included Business Assets
The other major factor you need to keep in mind when selling your business with social media accounts is that social media accounts are considered business assets. As such, they have a value attached to them. Never give them away without adding a value to them and charging extra for them. Many people with similar businesses will buy the accounts from you simply to have a developed list. As such, you want to consult with an expert to find out what the value of the social media accounts are and include that value in the sale price of your business.
If you are selling a business, you will want to have a lawyer help you draw up the papers, or review the papers that the other party has drawn up. Items such as social media accounts should have the terms properly laid out in the contract so there is no confusion. It is always best that you have a lawyer draw up the papers or review the papers with you, ensuring you understand the entire contract and that everything is legal. If you are looking to sell your business in the greater Minneapolis/St Paul, MN area, contact rb LEGAL for your business sale needs. We can help you draw up contracts and review contracts, helping to ensure the sale of your business is a smooth and legal one.