BUSINESS PURCHASES & SALES
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Business Purchases & Sales Attorney In Los Angeles
Business purchases and sales entail more than the transfer of tangible assets like property or merchandise – they also involve intangible interests such as partnership shares, limited liability company interests, or even corporate formation. To ensure that all parties understand their commitments in full detail, it is essential to have a contract or other signed agreement outlining what precisely has been purchased along with the existing business structure.
When it comes to business purchases and sales, rushing the process is never wise. The purchaser must take the appropriate time needed to carefully inspect all books, records, and other vital information before taking any action. Investing in a thorough investigation of the company prior to signing on for purchase will no doubt be invaluable.
When contemplating the acquisition or sale of a business, it is important to remember that this process involves much more than just tangible assets. In order to ensure a successful transaction, one must plan and inspect every detail for months – if not years! To navigate through these complexities, you need a business purchases and sales attorney in Los Angeles with experience in both purchasing and selling companies. With Haber Law Firm, APC and our expertise on your side, all aspects of your asset purchase agreement are sure to be taken care of quickly and efficiently.
The Process To Buy Or Sell A Business In California
Although it may not seem like much, purchasing or selling a small business can be an intricate process. The details of the sale procedure can alter depending on certain aspects, however, some essential steps in the transaction are universal.
Business Valuation
Prior to making a business available for sale or placing an offer, both parties should obtain a separate valuation of the company. This helps the seller accurately price their venture and gives the buyer leverage during negotiations.
Preliminary Negotiations
Before signing off on any business purchase, buyers and sellers must navigate a preliminary dialogue to determine the sale’s key components. Price is of course the most essential element, yet other factors such as transaction structure and preconditions of sale are equally paramount.
Due Diligence
Before a buyer finalizes their transaction, they must undertake due diligence to authenticate the commercial value and livability of the business. This detailed examination is often conducted by a Los Angeles business purchases and sales attorney who reviews all financial records as well as other pertinent documents associated with the organization.
Drafting Necessary Paperwork
Completing the sale or purchase of a business requires substantial documentation, including legally binding forms like:
- Letters of intent
- Purchase agreements
- Bills of sale
- Assignment of leases
- Security agreements
- Nondisclosure or confidentiality agreements
- Non-compete agreements
A business lawyer can supply you with advice and assistance with drafting and bargaining the terms of these documents.
Pre-Closing Review
Before officially closing the deal, all parties must confirm that every required procedure has been completed. This includes obtaining any necessary consents and permissions, such as those of landlords or suppliers.
Closing
When the buyer has paid the predetermined sum and all necessary documentation for transferring ownership has been presented by the seller, then a successful sale can be considered closed.
What’s The Business Worth?
Seeking a fair and accurate price for the sale of your business? An independent business valuation is an absolute must. A professional appraiser can assess various factors associated with the enterprise, such as its operations and profitability, to provide you with an exact number. Although one may be able to conduct some basic calculations on their own, enlisting in the services of a qualified expert will ensure that none are overpaying or underselling when it comes time to sell. With numerous approaches used for valuations ranging from financial analysis to industry comparisons; let a professional help make sure that you get what your business deserves.
- Business assets
- Future earnings
- Capitalization
- Book value
- Other financial metrics
- Business debts and liabilities
Three Legal Issues To Consider When Selling A Business in California
Before you commit to the sale of your business, it is critical that you are aware of any potential legal liabilities. A trio of key issues often arise in these situations:
- Confidentiality agreement. It is essential that the buyer gains full access to a business’s financial and other records during the due diligence process. Therefore, before granting access to such confidential documents, it is advisable to request they sign a confidentiality agreement.
- Indemnification. When closing the sale, the buyer may ask you to indemnify against any financial liability that arises from previous events. You may be held responsible for any claims as a result of this agreement.
- Continued employment. Purchasers regularly inquire about the seller remaining with the business after a sale is closed and help out during the transition. It’s fundamental that these precise particulars are outlined in any legitimate contract of sale.
Three Legal Issues To Consider When Buying a Business In California
If you’re set to purchase a business, there are several legal risks and considerations that must be made. These matters can include one or all of the following:
- Non-compete agreement. To safeguard your business and preserve its competitive advantage, you may want to require the seller to sign a non-compete agreement that restricts them from establishing a similar venture.
- Assets included in the purchase agreement. To make sure all business assets are included in the purchase agreement, it is essential to explicitly list them.
- Due diligence. Conducting due diligence is an intricate and often drawn-out undertaking that should only be managed by a knowledgeable expert to guarantee nothing goes overlooked.
Due Diligence Is Critical When Buying Or Selling A Business
It is essential for any buyer to be well-versed in all the details of what they are purchasing. Doing thorough research and taking the time to evaluate this data will help determine whether or not a sale should occur. Professional guidance through acquisition can make all the difference, as it provides buyers with expert advice that aids them in making informed decisions.
When buying or selling a business in Los Angeles, CA, you need to have an experienced business lawyer by your side. At Haber Law Firm, APC, we will be able to go through the company’s records and account information, as well as their lease agreements with critical eyes. The seller should also be forthcoming about all internal documents for accuracy purposes; any lack of disclosure could leave them open to future legal action. A reliable business lawyer can provide invaluable insight and advice throughout this process on either side of the transaction.
How Can A Business Lawyer Help When Selling Or Buying A Business?
Purchasers and sellers alike can benefit from the expertise of a business lawyer to guide them through the transaction process. A business lawyer can represent your interests during negotiations, ensure all necessary documents are legally binding, conduct due diligence on the sale, and protect against possible future disputes. By enlisting legal services prior to signing an agreement or conducting a purchase, you reduce risk while protecting yourself long-term.
Contact Our Los Angeles Business Purchases & Sales Attorney Today
Whether you are looking to purchase or sell a business in Los Angeles County, Ventura County, or Orange County, Haber Law Firm, APC is here to provide the legal support and guidance that you need throughout the entire transaction process. Our experienced Los Angeles business purchases and sales lawyer will guide you through all of the financial and legal matters that must be considered when it comes to these types of transactions. Get in touch with us today for your free consultation by either filling out our online form or giving us a call at (818) 900-6317.
Disclaimer
This website contains attorney advertising. The information provided herein should not be relied upon as legal advice. Every legal matter is unique and you should always seek the advice of a retained attorney to answer your legal inquiries. Haber Law Firm, APC, will not represent you unless an attorney-client relationship is formally created in writing.
