General Legal Issues
Selling your business or buying a competitor’s business may be the most important financial decision you’ll ever make.
Even before negotiations begin, a number of legal issues arise: Are both parties’ confidentiality agreements and covenants not to compete enforceable? Is the letter of intent really a contract to purchase? What warranties or representations do you need from the other party and what warranties or representations will you be expected to make? Will you be required to indemnify the other party? How can you minimize the tax impacts of the purchase? What disclosure obligations does each party have to employees and creditors? Addressing these issues early in the process improves the odds of a successful transaction.
If you are a buyer, you’ll need to complete your due diligence on the business you intend to purchase. Has the business complied with all applicable local, state and federal laws? Has the current owner done anything to decrease the goodwill of the business? Can the real estate be legally used for the purpose intended? Is there any pending litigation related to the business? What other potential liabilities come with the purchase of the business? The Rocky Mountain Business Lawyers will help you identify and minimize the risks associated with the purchase of a business.
It typically takes several years to implement a successful exit strategy to sell your business. How can you maximize the value of your business prior to sale? Who are the best potential buyers of your business? What is the value of the “goodwill” of the business? Can the buyer realistically take over all of the debts and liabilities of the business? Should you help run the business for a period of time after the sale? On what terms will the buyer purchase your business? Is it advisable to hire a business broker to sell your business? How can you minimize the tax impact of the sale of your business?
Whether you are buying or selling a business, you need experienced legal counsel to represent you throughout the process. The Denver Business Lawyers specialize in pre-sale business planning as well as negotiating and executing the final transaction. Call us today at (303) 500-1484 for a free consultation. Let us put our experience to work for you.