Selling a Business – Getting your Business ready for Sale
You’ve got homework to do before you can successfully sell your small business. Even if you already have an interested buyer, attention to the details at this stage of the game will help you in the long run and protect you from unexpected snafus. Your small business lawyer should be able to help you with these steps. 1. If you’re leasing space for your business, find out from...
Read MoreBuying or Selling a Business – the Significance of the Lease
It is rare that a business in New York owns the property from which it operates. Most businesses rent commercial space for their store/restaurant/warehouse or other venture. Thus, the owners of the business will be party to a lease with the owner of the building that houses the business. This lease becomes an important piece in the puzzle that is the process of selling/buying a business in...
Read MoreAsset Sale versus Stock Sale
When you are buying or selling a business and the business is operated by a corporation or LLC, you have the option of an asset sale versus a stock sale. What is the difference, you ask. Let me explain. LIABILITIES FOR DEBTS Scenario 1: The business is operated by a corporation. All of the business’ assets (equipment, reputation, customer lists, leases for physical locations) are...
Read MoreBuying a New York Business – What a Business Attorney can do for You
Buying a New York business involves many steps, legal considerations and documents. I think almost anyone would be well advised to seek the help of a New York business attorney to make the purchase successful and legally sound. This post is designed to give you an overview of my usual involvement in the process of buying a New York business. At the time I am being approached to help with...
Read MorePreparing your Business for Sale/Starting your Internet Business LLC
I’ve pretty much had given up exercise for blogging. But since I figured out a way to take blogging to the gym, I’ve been back. I make it bearable by listening to podcasts, the audio version of blogs. Today I listened to (and recommend): Preparing you Businesss for Sale – An interview with Mathew Ashburn hosted by Rush Nigut Starting your Internet Business LCC...
Read MoreFive Steps to Buying a Small Business in New York – Part 5: Closing the Deal
See Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here; Finally, the day of the closing on your small business purchase has arrived. The parties and their attorneys come together for the final handshake on the deal. All of the remaining agreements are executed, documents are exchanged, and money changes hands. Usually, the sales agreement sets forth when and where the closing is...
Read MoreFive Steps to Buying a Small Business in New York – Part 4: Documenting the Deal
See Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here; The purchase of a small business requires many legal agreements and documents to effect the transaction. Obviously, you need an experienced attorney to draft and/or review all of these documents and explain their significance to you. While you were the one to negotiate and reach an agreement on the business terms with the...
Read MoreFive Steps to Buying a Small Business in New York – Part 3: Due Diligence
(See Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here Due diligence is the process of investigating the business you are planning to buy inside and out; lots of files to look at, numbers to crunch and agreements to review. You want to know that the price you are paying for the business is fair, and that there are no hidden secrets about the business that could haunt you...
Read MoreFive Steps to Buying a Small Business In New York – Part 2: Negotiating the Terms of the Deal
See Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here; Once you have found a business that seems like a worthwhile acquisition (a “target”), you are ready to negotiate the terms of the transaction. But what are the typical terms of a small business purchase? What is there to consider? In other words, what are you in for? Enter: the “term sheet,” also known as a...
Read MoreFive Steps to Buying a Small Business in New York – Part 1
See Part 1 here; Part 2 here; Part 3 here; Part 4 here; Part 5 here; This is the first in a series of five posts working through the process of buying a small business in New York. This series will focus on the legal aspects of such a transaction and an attorney’s contribution to a successful business purchase. Let’s start with an overview of the usual sequence of events when buying a...
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