Purchase and Sale of Businesses
The purchase or sale foo a business is an exciting time for both parties. The seller has built a successful business and is now cashing out on the equity they have built. The buyer is acquiring a business that might be the culmination of a lifelong dream. No matter the circumstance, professional legal counsel on the structure and details of the transaction benefits everyone involved. Have you drafted a clear letter of intent that spells out the essential terms that both parties agree to? An LOI is a great way to make sure a workable deal is possible before getting bogged down in the particulars. And speaking of the particulars, there are a variety of ways to structure a purcase transaction.
Whether a Stock Sale, Asset Sale, Merger, the particulars of buying or selling of a business create a myriad of legal and tax consequences. These agreements for the purchase and sale of business have significant importance on a smooth transaction, a happy buyer and seller. My approach to these contracts is to get the parties to discuss in advance the ins-and-outs of the transaction. The more things are discussed in advance, the less disagreement there is later on. If you are buying or selling your business your lawyer should play a large role from start to finish.