Purchasing an existing business has numerous benefits. The company, physical location, employees, and customer base are already established, saving the buyer the time and energy required to start a new company. Buying an already established company is appealing to many individuals because it is less expensive than attempting to start up a new business. Other benefits and advantages include:
Before making an offer on an existing corporation, a buyer should thoroughly research the company's financial history. Items examined should include:
Paying the right price for a company is very important. There are a number of different ways to figure out the value of a corporation before purchasing it. Here are a few:
When you decide to sell your existing business, you must be ready to commit some time to organizing all your financial documents and getting the company in order. Also, you should do your best to make sure that the company is not currently facing any legal problems or is at risk of being sued any time soon. That way, there will be no major disruptions during the transfer of the company from one owner to another.
Sales agreements and sales contracts for a sale of a company need to be full of details and describe the sale of the company. When you draft a sales agreement, these legal terms should be included:
Drafting business agreements can be complex and tricky. Hiring an experienced contracts lawyer is important to make sure all the necessary terms of the contract are included in the sales agreement.
Unfortunately when selling a company, debt will still remain and creditors can still come after you for the corporation’s debt. The buyer should get a list of all the creditors of the seller and notify them before they take over the company. The notice should include such items as the purchase price, the names and addresses of the buyer and seller, and the new address where the seller may be reached, among other things. Check with your local laws for the exact requirements. Here are some options when dealing with business debt when selling a company:
Business acquisition and selling a company involves many negotiations and contracts. A business attorney can assist you in the negotiation process to help you get what you want for your future business. An attorney can also help you sift through financial documents to determine what is relevant to the sales transaction. A lawyer can also arrange the real estate sales process, should you ultimately wish to buy or sell the business property.
Last Modified: 02-28-2018 03:52 AM PSTLaw Library Disclaimer
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