Are You Considering Buying/Selling a Business ?
The buying or selling of a business will often benefit from speaking with an experienced attorney who not only knows the ins and out of such a purchase, but will have years of experience of suing or defending people in similar transactions that went off the rails. Such inside knowledge can be helpful to share with you so that you can anticipate future problems, and plan for them. Then should the worst happen, you will have essentially ‘rehearsed” these scenarios and will be better able to deal with them or prevail. We are here to provide buyers of businesses professional representation and knowledgeable counsel to make the process smother and more profitable while pigeonholing shielding you from nasty tangents that so often occur post purchase.
We Represent Buyers or Sellers of Businesses
Buying Selling a Business – We advise clients on either side of the sale of a business in Orange County, making sure their rights in the transaction are fully protected and the most common post-sale pitfalls are discussed and firewalls in place to protect you even better.
Unfortunately, many buyers and sellers drive down to their local Staples to grab whatever form says “Business Purchase Contract” on it. We understand. People do this to save the expense of an attorney. That’s so short sighted. The courts are often the end destination of such hasty deals. An off the shelf one-size-fits-all ‘legal form’ always manages to not fully cover the very specific elements of your purchase or sale. In the end, and your rights and interests may be overlooked, missed or compromised. The cost of doing a purchase or sale of a business correctly is a small cost when you consider the long picture. Lawyers phones ring off the hook from people who confess: “If I had it to do over again, of course, I would have done ____ and ____. Do’ah…”
Fully Understanding the Business Under Consideration
We believe that it is essential that you fully understand the business that you are considering purchasing. As prospective buyer, you need to understand all aspects of the business, including any ongoing problems or future potential issues. We’ve witnessed pending business sales where sellers are less than forthright in their motivation for selling.
Two Real Life Examples:
- A seller of a busy accounting and tax preparation business – who (secretly) was pretty certain that 2 former employees were seeking a wrongful termination attorney to file a lawsuit for years of missed breaks and lunches, and then being fired for “retaliation” for speaking out to the labor board. That very real possible legal mess could have resulted in a huge potential lawsuit that would be the corporation’s problem and the problem of the new corporate officers. Such a lawsuit could easily seek (and by cast-in-concrete state and Federal statutes be awarded) a $330,000+ settlement. On top of the sizable initial deposit and 120 months of payments, the buyers would default on their payments for sure.
- A seller of a business was selling his very profitable franchise – that did roof inspections for homes in California during the escrow process. What wasn’t shared was that all the homes that required the roof inspection for a reverse mortgage, were no longer going to require them in 14 months (a huge percentage of the existing sales) and that some large home insurers who were requesting them now were rewriting their policies to put the brakes on future mold claims which was another driving motivation for the roof inspections that would then dissipate in a year or two. The price of the business, based on current sales, given the uncovered new business environment right around the corner was way overpriced if not fraudulently being marketed, and it was very likely that the schedule of payments could not be met in mere months following the purchase due to a huge expected decline of inspection requests. That’s exactly what happened.
We Can Help You Investigate The Businesses’ Value & Sustainability
One man’s profit is another man’s loss – In many business sales opportunities, there may be significant pitfalls that may outweigh the future potential value and ability to generate a profit. Pursuing such a business opportunity may not be in your best interest. We can help you in a consulting capacity and help you perform the due diligent review of the business before any actual negotiations or actual transactions take place. We will offer our frank and professional assessment and evaluation. Proper due diligence is essentially a financial and legal audit by us on your behalf. All agreements; previous, pending and potential litigation actions, corporate records, security interests, business, revolving and real estate loans will be reviewed to determine the real viability and current status of the business you are considering from a thorough legal perspective.
To discuss your options when buying a business or selling a business – contact us. We are here to assist business owners —new and seasoned— in the creation, management, protection and growth your business. Whether your business is located in Orange County, Los Angeles, or Riverside, we can provide you with the affordable legal services you require to but, sell, or keep your business protected and thriving.
Call Us for a Free Phone or Office Consultation
Call Orange County Business Lawyers for a free phone or office consultation. We are dedicated to helping Orange County business owners make educated, informed decisions about their business endeavors, opportunities and troubles that invariably come knocking —at some point— on every business owner’s door. Call us at (888) 866-3620 for an on the spot phone consultation or an appointment to confidentially review your situation.