Tampa Business Acquisition Attorney
When purchasing a business, you need sound legal advice. You want to receive the best value for your money, but you also want to ensure that the purchase agreement is fair and that it does not have unjust clauses. Below, our Tampa business acquisition attorney outlines some of the most important factors to consider when purchasing a business.
Acquiring an Existing Business
There are many benefits that come with purchasing an existing business. The location of the company, employees, and customer base are already well established. You will also have total control over the operations of the business, and can utilize your skills to optimize revenue cycles. You can also save on the costs of starting a new business and minimize the risk of entering a new field. A partnership, LLC, or corporation will already be well established in terms of market share and finance. This will also reduce the time investment necessary to make a profit.
While you will not face the risks of starting a business yourself, it is still important to carefully review the financial past of any business before you purchase it.
Financial Records
It is critical that you understand the current number of accounts receivable and payable for the business, as well as its current cash flow. If the business runs short of cash, you may have to close the doors. Check the credit limit and balance to determine if there is credit available and if the business can leverage awards such as traveling miles or cash-back.
Employees and Employee Benefits
It is a good idea to look through employee files, learn about the best employees on the team, and learn about any workplace politics that may affect business operations. You should also review the business’ policies on health care, personal time, and emergencies to ensure they are compliant with state law in Florida.
Contracts
It is important to review all contracts so you understand the agreements the business already has with vendors and partners. Reviewing the contracts will also give you a better understanding of when certain services will renew or when contracts will end.
Previous Lawsuits
You should also determine if the business was involved in litigation in the past, or if it has pending litigation. These issues can stem from quality control from customers, employee terminations, or other disputes. Sometimes, business owners will sell their company instead of trying to handle these disagreements.
Purchase Agreements
Under state law, there are at least 21 documents that are needed to purchase or sell a business. These include, but are not limited to, the following:
- Engagement letter
- Non-disclosure agreement
- Purchase agreement
- Promissory note
- Letter of intent
- Security agreement
Contact Our Business Acquisition Attorney in Tampa for Help
There are many benefits you can reap by purchasing a business. However, you should not do it alone. At BBDG Law, our Tampa business acquisition attorney can provide the advice you need and help you navigate the process to prevent any unpleasant surprises or developments. Call us today at (813) 221-3759 or fill out our online form to schedule a consultation and to learn more.
