Thinking of Buying or Selling a Business?

Buying or selling a business can be an important step in your financial future. For the seller, you have put years of hard work into your business, you have an opportunity to cash out. Be sure there are no hidden pitfalls in the agreement that the buyer is proposing.

If you are the buyer, be sure you are getting what you paid for and that there are no hidden liabilities.

Some of the things to be considered are:

• What are you buying?  Do you have a clear and concise listing of the assets of businesses that you are paying for?  What is being retained by the seller?

• Things such as post office box, phone numbers, accounts receivable, patents trademarks, websites, email addresses and business names are all important considerations in arriving at a fair sales price.

• What status do accounts receivable and accounts payable play in your agreement?

• Are there any leases of real property or equipment?

• What kind of warranties or promises has the seller made?

• Will the seller be allowed to go into business after he has sold to you or work for someone else within the same line of work?  The seller or his key employees doing this could greatly diminish the value of the business you’re buying.

• These are just a few of many important questions which must be carefully considered when you are buying and selling a business.  You should always consult your local counsel to assist you.