3 Reasons to Talk to a Lawyer Before Buying or Selling Your Business

Buying or selling a business is a complex process.  If you spent time, money, and effort growing your business and you’re considering selling it to a qualified buyer—or if you’re considering the purchase of a business—you should hire an experienced attorney to advise you through all phases of the sale.  Here are three reasons you should consult with a lawyer before moving forward with your purchase or sale plans: 

First, an experienced attorney will ask you a series of questions to truly understand the best structure of your transaction.  When buying or selling a business, the deal typically takes one of two forms:  an asset purchase agreement or a stock purchase agreement.  There are certain risks and rewards with each, depending on the type of business and the regular business practices of the business owner. 

Second, good lawyer will ensure your transaction goes well, even if there’s an ultimate breach or default in the purchase.  If you’re selling a business, your lawyer will ensure you have the ability to take back your assets or your ownership if the buyer stops paying for any reason.  If you’re buying a business, your lawyer will make sure the seller cannot swoop back in to take control or act on behalf of your new business.  

Third and finally, a qualified lawyer will work with he following mindset:  keep it simple and get the deal done.  Many lawyers try to over-complicate the sale process.  This often appears with a 400-page agreement, and a lawyer who is somewhat hostile to the buyer or seller, depending on the situation.  An experienced lawyer will draft an agreement that is reasonable and fits the circumstances.  Also, this lawyer will develop a positive and trusting relationship with the buyer or seller’s counsel, to ensure the deal gets done.

The attorneys at Weaver, Bennett & Bland understand each step of this process, from due diligence and pricing to negotiation and contract drafting.  We regularly advise clients in the areas of:

Stock Purchase Agreements
Asset Purchase Agreements
Joint Venture Agreements
Business Succession Planning and Contracts
Buy-Sell Agreements

If you are thinking of buying or selling a business, contact the business purchase & sale agreement attorneys at Weaver, Bennett & Bland today at (704) 844-1400.