Buying a business is a monumental decision. It is imperative to understand not only what you want from a business but what you are actually getting in the sale. Due to the highly complicated and detailed nature of purchasing a business, it is best to work with an attorney that understands the intricacies that come with the sale and purchase of businesses. Often, the broker is not designing an agreement for buyers that has the buyer’s best interests in mind. Therefore, when a buyer has an attorney on their side who understands the ins and outs that come with evaluating a purchase agreement and how to effectively negotiate, they are in the best position to make a determination on whether or not the deal is, in fact, a good one.
If you are interested in purchasing a business in California, you can call the Los Angeles business litigation attorneys at the Leiva Law Firm for assistance. From the start, the savvy legal team at the Leiva Law Firm will be scrutinizing any contract that you are given and providing you with the highest quality legal advice. When moving forward with a contract of interest, your attorney at the Leiva Law Firm will strategically negotiate to ensure you get the best possible terms that work for your unique objectives.
Investigating a Business Before Purchasing
There are many different considerations that go into buying a business and running its operations. Prospective business owners will have to determine how they want to structure their businesses. This could be by having it be an S-Coproration, a limited liability company, or another business structure. Business owners have to decide if they will hire employees or bring aboard strategic partners to help manage operations. And when buying a business, it must be clear what a purchase actually means. For instance, will a buyer be getting only the assets of a business or an established business with its intellectual property? Knowing what a buyer wants and what they are getting is critical to purchasing a business.
Investigating all aspects of a business is another crucial action that must be done before an agreement is signed and a purchase is made. With all of the things that need to be done, forgoing a truly thorough investigation into a business can often happen. When an investigation is overlooked and brushed to the side, a bad transaction can quickly transpire. After purchase, the implications that might result and that a buyer will have to deal with can be incredibly damaging and costly to work out.
Perhaps a business has liens against its assets, or the assets are in poor condition. Maybe the business does not have the necessary licenses, or if they do, these licenses cannot be transferred. Potentially, a business has a history of receiving fines and citations for different violations, or the company’s books are not accurate. All of these things and more should be evaluated through an investigation well before a purchase is made.
Speak with an Attorney at the Leiva Law Firm Today
You want to make sure you make an educated and informed decision and that you have all of the details of a business before signing on the dotted line. Indeed the devil is in the details when it comes to purchasing a business and signing an agreement.
For assistance buying or selling a business, please call the Los Angeles business attorney at the Leiva Law Firm to schedule a free consultation at (818) 519-4465.
