Buying a Business
Buying a business is a complicated process that requires a lawyer. Lawyers with experience in California business sales have the skills to guide you through the process. Purchase agreements are usually made and presented by brokers, leaving parties vulnerable. To make sure you are participating in the highest standard, make sure you are negotiating with a broker a part of the California Association of Business Brokers.
Structure the agreement and transition with a business broker. Consulting with your attorney and tax advisor to make sure you have the assets to hold the company. Deciding what type of corporation your business will be (S-Cpro, C-Corp or LLC) will determine the unique evaluation.
Remember to do your due diligence. Successful business purchases are contingent upon investigations of every aspect of the business. Make sure that the seller is the ACTUAL owner of the business and assets. A UCC search determines if the business is properly licensed and if those licenses can be transferred. What is the business’ history? Any government problems? History of lawsuits? In addition, make sure the company’s financial books and records are up to fate and accurate.
All business agreements need to explicitly state what a buyer is getting. This includes all service agreements, leases, inventory, equipment, intellectual property, accounts receivables and licenses. Information regarding trademarks and service marks can be found on the California Secretary of State’s website.
