Consult with Your Attorney Before Buying a New Business

If you already own a business, you may have reached the point where you are ready to expand. This can be an incredibly exciting time as you get ready to breathe expanded life into your existing company with an acquisition or go in a new decision altogether. You may also be new to the world of business, hoping to buy a company that is already on the ground and structured with years behind it, proving its worth, as well as offering an existing customer base.

The potential new business may come with real estate attached, as well as other property and substantial inventory. A team of employees is probably in place and could come in very helpful as they are informed about how the business runs daily (they are probably on pins and needles wondering what will happen with the sale too). Just as with entering in to any major business deal though, legal advice from a skilled business attorney is highly recommended. Complex agreements and contracts may be required at the end, and you will need legal help there, but an experienced attorney will also help you explore other important details (along with raising any questions that need to be answered) regarding issues such as:

Equipment included
The exact amount of office or warehouse space—and whether a rental lease will be taken over or purchased as part of the business
Intellectual property included
Business partnerships and agreements
Any current credit issues or lawsuits against the business
Existing contracts with vendors and other businesses
Employee and independent contractor agreements currently in place

You may want to work with both your business attorney and an experienced accountant in valuing the potential business as well as evaluating their operating costs and profits for the last few years. While the business may not be currently thriving, you could have hopes to negotiate a good price with the help of your business attorney and turn it around or absorb it into your existing business operations due to its location, real estate, and inventory. If you are thinking about bringing in additional partners to the new business, their roles should be outlined extensively, as well as their intended contributions with helpful capital.

If you have concerns about business or employee issues, consult with Attorney Shane Coons. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.

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Consult with Your Attorney Before Buying a New Business

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