Legal advice for buying and selling a business
The Sale or Purchase of a Business transforms lives of owners, managers and employees. To ensure the transformation is positive and happens smoothly, it is vital to seek high quality legal advice on the structure and process of the deal.
Even the most straightforward seeming Acquisition or Sale of a Business has hidden layers of complexity.
A good Corporate Lawyer will have completed scores, if not hundreds, of successful transactions in the past and will be able to anticipate and avoid the pitfalls which can trap the unwary.
Legal advice for buying a business
If you want to Buy a Business, early legal advice will ensure that you understand the correct questions to ask in the due diligence process.
Good due diligence means that before the price is struck and contracts are drawn up, the buyer will have a clear understanding of the assets and operations of a target company.
A clear view of the goodwill (simply put, the difference between the value of the target company assets and the price originally fixed by the seller) will assist in realistic negotiations and help to avoid unnecessary costs and delays further down the line
Selling a business
There is also more to selling a business than agreeing a price and banking the cheque. The buyer will have looked for any angle to haggle the price down and good legal advisers are a business owner's best friend in this process.
In addition, where a founder has been critical in the growth of the business, the acquirer is likely to want to retain his or her services. In many cases the deal will only be partly in cash and the balance of the price will be made up of shares, share options and ‘earn out’ fees which will be accrued after the change in ownership.
If you sell your business, then failure to be properly advised in these circumstances may cause problems which can endure for years.
Your lawyer’s experience and knowledge in all of these areas will ensure that your sale or purchase is as smooth as possible so that you can focus on growing your business without worry.
Contact our experts
If you are finding yourself struggling with a commercial purchase, acting quickly gives you the best chance of success.
Our commercial solicitors can help advise on the best course of action to take, while protecting your legal position every step of the way.
Get in touch with our experts at our Liverpool and Wirral offices and they’ll be on hand to guide you through this process.