Purchasing a Business? Not So Fast…
Are you thinking about purchasing a business? Before doing so, it is crucial for you to carefully negotiate the terms of the sales contract. You must be knowledgeable about the business, its operations, and corporate documents. This means that you must review the articles of formation, statement of information and, depending on whether you are buying a corporation or an LLC, you will need to review the bylaws or operating agreement, minutes, and/or amendments to the bylaws or operating agreement to ensure that the corporate records are complete.
In addition, it is also necessary to review the accounting, inventory records, payroll, and accounts payable and receivable of the company to determine whether you are purchasing a profitable business.
If the business leases its property, then you need to carefully review the lease and confirm that it may be assigned to you as the new owner of the business.
Here at Chauvel & Glatt, we represent individuals and business owners during acquisitions and mergers. We will guide you through the process to ensure that you are receiving the best deal. To find out how our attorney can assist you, contact us today.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (Photo credit: 123rf.com)