Business Acquisition Lawyer
When you buy a business, you want outstanding legal advice. You want a fair purchase agreement, without unfair clauses, and to receive the best value out of the deal. You need to know the process and what to expect regarding legal advice.
Purchase of an existing business
When purchasing an existing business, it often makes sense to use leverage regarding your acquisition. This often means finding the financial and marketing strategies that will get results, and leveraging strategies which can be implemented, ideally with experienced counsel.
Purchasing an existing business has numerous benefits. For example, the business, physical location, employees, and customer base are already established. You gain complete control over the operations and can apply your talents to optimizing revenues. You also save on the startup costs and risk of entering a new field. An established entity (corporation, LLC, or partnership) has already established itself in terms of finance and market share. That reduces the time investment needed to turn a profit.
Although the purchaser no longer risks the perils of starting a business, he/she should still carefully review the financial past of the business before taking any action. In order to do so, a purchaser should examine the following items:
Certified financial records:
Know the number of accounts receivable and payable that you must manage, as well as the cash flow. If your business runs out of cash, then you have to close the shop. Check the company credit card records to see if the business can leverage awards such as cashback and traveling miles.
Employee files and benefits:
See if the employee files can inform you about the best team players and how office politics will affect business operations. Find out the policy on healthcare, personal time and emergencies, and if they are compliant with state law.
Contracts:
Which agreements with partners and vendors do you have to honor? How much should you pay for cleaning services or food delivery? What are the expiration dates and times for renewal?
Past lawsuits:
Check to see potential past litigation; this could be from employment termination disagreements, quality control from customers, or moral hazard issues from operations. Sometimes a previous owner will sell a business to avoid handling these suits. Try to ensure that you have not inherited a white elephant project, with the term “white elephant” referring to an investment that incurs more costs than its worth.
Leases:
How much rent do you have to pay per month or per year? Do you have a fixed amount or need to budget for annual increases? What obligations do landlords have regarding repairs and maintenance?
Business Purchase Agreements
We can assist with the appropriate legal documents to facilitate purchasing or selling a business. These include a non-disclosure agreement (NDA), engagement letter, purchase agreement, affidavit, resolutions, non-competes if the terms apply, letter of intent, promissory note, and security agreement.
Having all of your papers in order will save legal trouble down the road. You need to apply for an Employment Identification Number (EIN) for tax purposes. That way you pay your returns on a yearly or quarterly basis and ensure that your employees get appropriate deductions.
Business Acquisition Attorney
Business acquisitions come in all types and sizes and can be a complicated process. Retaining an experienced lawyer is important because they have a great amount of insight which will solidify a successful purchase. Our firm is able to anticipate challenges, proactively solve problems, and handle negotiations and due diligence right through to the closing.
Attorney Ronald Cook will help you finalize your business purchase by avoiding the key problems that typically surface. We dissect the fine print and include:
- Preparing the documentation for the purchase
- Defining the terms and conditions related to the purchase
- Negotiating deals or contracts
- Organizing your business and incorporation
- Setting up any necessary entities
Without the proper legal attention, purchasing an existing business can turn from an opportunity to a disaster. Consider the reasons why an owner may be willing to sell and identify their motives. Someone may try to offload a bad investment on you. The seller could have committed fraud and they are trying to bury the details within the purchase details. You need a lawyer who has your best interests at heart to identify the potential red flags and orchestrate a deal that is to your benefit.
Seek outstanding legal counsel
The law firm will assist you every step of the way, ensuring your business purchase is done properly. We are experienced with purchase agreements in various industries and are very familiar with the issues arising in the structuring and negotiating of such agreements.
Contact us to assist you in purchasing your new business. Careful selection of the right lawyer to guide you through the process of buying a business is critical. Trust our years of experience to assist you.
