When Buying a Business
Do I need a lawyer to buy a business? Yes, you do need a lawyer to buy a business. Purchasing an existing company can be a very complicated process. Therefore, it is critical to consult a local business lawyer before you make an offer. Although you do not need a lawyer by law, it is highly recommended that you use one because a business lawyer can make sure all contracts with customers, suppliers and employees are up to date. Moreover, there are many variables to consider and you need to be careful that you do not invest in a company that is failing or about to go bankrupt. Your business lawyer knows what questions you should ask during negotiation, drafting and reviewing the terms of your purchase agreement and provide general guidance that can help get you the best deal for your investment.
When Selling a Business
Do I need a lawyer to sell a business? Yes. you need a lawyer to sell a business, just as business purchasers need the assistance of a experienced business lawyer, to ensure that you are prepared with the necessary paperwork, which is a lot. To give you a better idea, the legal documents needed for sale of business include the following:
- Non-Disclosure Confidentiality Agreement
- Personal Financial Statement Form for Buyer to Complete
- Offer-to-Purchase Agreement
- Note of Seller Financing
- Financial Statements for Current and Past Two to Three Years
- Statement of Seller’s Discretionary Earnings and Cash Flow
- Financial Trends and Ratios
- Accounts Payable and Accounts Receivables Aging Reports
- Inventory List with Values Detailed
The Importance of hiring a lawyer in purchasing and selling business.
Overall, whether you are buying or selling a business, it is important to have a lawyer in your corner to ensure that the contracts do not lead to court battles and costly litigation. Your attorney will know what to look out for when drafting and negotiating terms to protect you from possible legal exposure. Individuals on either side of these transactions should feel confident about the terms to which they agree.
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