How Can an Attorney Help You For Selling or Purchasing a Privately Held Business?

Are you are considering buying or selling a privately held business. You must keep in mind that these are complex transactions with both legal and tax risks, which must be addressed.

For Selling a Privately Held Business

There will be different legal concerns and tax consequences. Such as if the business entity is a sole proprietorship, a partnership, a corporation or a limited liability company. The business entity documents may govern the process of the sale of the business.

There are various options for transferring ownership of the business. The simplest is an outright sale. In this situation you transfer ownership and receive the total purchase price at closing. However, sometimes purchasers do not have enough cash on hand and may attempt to negotiate an installment sale, retain a promissory note executed by the purchaser etc.

The next step includes drafting a purchase agreement. This will cover what is being sold, including equipment, inventory. Also, intellectual property and customer lists. The agreement may also address any liabilities, and representations, warranties of the respective parties.

For Purchasing a Privately Held Business

You will need to consider how to protect your interests. So, you will want to be sure that the company’s legal records are in order and that the accounting is up to date. You must verify that there are no tax liabilities or other payables.

With any size of business, there are significant sums of money involved. Therefore, you want to be sure to get expert legal and accounting advice so that you can assess the risks while making informed decisions.

You must consult an established, renowned and experienced Real Estate Attorney or Business Transaction Lawyer in NJ.