subject: Buying and Selling a Business [print this page] Buying and Selling a Business Buying and Selling a Business
Buying or selling a business can be a complicated and difficult process that requires numerous contracts and lots of paperwork. When a business is sold or bought, another owner can either acquire it or it can be merged with another existing business. No matter how a business is bought or sold, an experienced business attorney should be retained to assist in the process.
Letter of Intent
When a party considers purchasing or merging with a business, a letter of intent must be drafted so that both parties understand the parameters of the business purchase. Although this letter of intent does not bind both parties to any contract, it does define what aspects of the transaction each party will be responsible for and what the outcome of the transaction will be if the transaction moves ahead.
Due Diligence
Once the letter of intent has been created, due diligence must be performed so that the buyer of the business is aware of all the liabilities and any unknown concerns which could have an effect on the business purchase. An experienced business transaction attorney can help determine what liabilities the existing business is facing and can assist in getting all the information needed from the business being bought.
Taxes
Part of any business transaction is the tax laws that arise when the business purchase or sale occurs. An experienced business transaction attorney will be able to determine if there are any tax pitfalls or regulations that must be followed during the business transaction.
Negotiations
After the letter of intent has been drafted, due diligence performed, and tax laws have been determined, the final business negotiations must be taken care of. An attorney will help you work with the other business and make sure the transaction is resolved the way you want it to.
Contracts
Finally, your business attorney will help draw up and navigate through all the contracts during the buying or selling transaction. Making sure your contacts are in order will protect you from signing something that you cannot uphold.
All aspects of a large business transaction, such as purchasing or selling a business, require a lot of expertise, knowledge, and business sense. If you own a business and are trying to sell it, or if you want to purchase a business in the Central Pennsylvania area, please visit the website of Saidis Flower & Lindsay.
