Buying or Selling a Business? You Need a Lawyer!
It’s not uncommon for small businesses to sell to larger organizations once they grow their reputation. In fact, 9,919 small businesses sold to new owners and operators in 2017 alone. Though sales happen every day, the legal side of transferring ownership of a company is incredibly complex. For most people involved in the buying selling business, keeping up with legal codes and regulations is just too much to handle on top of taking ownership of a new company. Hiring an experienced lawyer to help you with buying or selling a business is always the best option.
But what if you’re just starting to think about getting into the buying and selling business? Here are a few ways a lawyer can help you navigate the process.
They Can Draft Acquisition Agreements
When you take over a business or sell it to someone else, the business, its inventory, and general operation strategy becomes the property of the new owner. To make sure everything is done properly, the buyer and seller must sign an acquisition agreement.
This agreement outlines the terms of the takeover and helps keep the buyer and seller on the same page.
In the long-run, the acquisition agreement will help reduce the risk of disputes, lawsuits and confusion should the seller choose to reenter the same industry.
Lawyers Can Help with Negotiations
When it comes right down to it, the buying selling business is all about getting the right price. Buyers want to spend as little as possible while sellers want to get as much as they can for their company.
This leads to many negotiations that, without legal help, could stall the sale agreement or end it entirely.
A lawyer will help smooth over the negotiation process and make sure their clients are getting the best deal possible.
Attorneys Help Both Buyers and Sellers Avoid Potential Pitfalls
Each business operates with a certain degree of risk. This is true regardless of industry, size, or projected profits.
For clients looking to buy into a new industry, those risks are often unknown to them. If they’re not prepared, the business may fail before they have a chance to truly get started.
When buying and selling businesses, it’s in everyone’s best interest that all those possible risks and pitfalls are discovered before the acquisition is complete.
Attorneys know what to look for, where to look, and will explain what both buyers and sellers can expect from the transfer of ownership.
Believe it or not, 96 percent of businesses fail in their first ten years. This means the risks can extend well after the sale is complete.
How to Find the Right Lawyer for the Buying or Selling a Business Process
Once you decide the time is right for buying or selling a business, start looking for an attorney immediately. They’ll help review the documents, risks, and start negotiations as soon as possible.
The right attorney will work closely with you to help you get the best deal possible. Lisa Wills of the Law Offices of Lisa Wills is the right attorney to protect your interests when buying or selling a business.
Contact us today to schedule a free consultation before getting involved in the buying and selling business.