Whether you are buying an existing business or selling your business, the transaction is usually a major event for most people. We help guide our clients through the purchase or sale of the business, help identify risks, and work to close the transaction in a timely and cost-effective manner.
A person seeking to purchase a business has many choices to make, including whether to structure the transaction as an asset or stock purchase. A person purchasing a business may consider forming a new entity to complete the purchase or revising the existing corporate documents to better reflect the goals and objectives of the business’s new owners. You need to ensure the purchase documents protect you form the liabilities of the selling party. It is also likely that the purchase involves a substantial financial investment.
Selling a business might mark the end of a career for a small business owner or maybe an exit to pursue a new opportunity. A business attorney helps the seller structure the deal in a way that supports what comes next. Often, the buyer lacks funds and asks the seller to carry a loan for the buyer, in which case the seller must have protection and security to protect against a possible default by the buyer. We also believe strongly in the team approach and work closely with the seller’s CPA to ensure the structure of the deal considers the seller’s tax implications.
With extra thought and planning, an owner selling a business may engage a key employee or family member and create a timeline and plan for the sale. Attorneys call this business succession planning. We work with many closely held local businesses that will eventually need to transition to a new generation of ownership and often the continued success of the business depends on finding a new owner on the inside, that understands and appreciates the business purpose and culture.