So you want to purchase a company or business asset. Buying a company is an exciting venture and you may have high hopes for growing and expanding your business.
But buyer beware: before signing the dotted line, you absolutely must do your due diligence.
A deal that looks promising from the start may have hidden issues that can cost you thousands if not millions of dollars after you complete the purchase. Doing the proper due diligence into a company’s background and operations can save you from experiencing major problems and liabilities down the line. If you fail to do your due diligence, those issues can ultimately overshadow the value of the asset you just purchased.
At Holmes Business Law, we take due diligence seriously because it means protecting our clients. While you can and should do your own due diligence, it’s important to hire an experienced business lawyer to make sure you’re totally covered.
So you've got your eye on buying a business. Or you’re ready to sell your own company to someone else. Whichever side you’re on, buyer and seller are both on board and ready to move forward with the sale. You’ve even drafted a Letter of Intent to demonstrate that you’re serious about the business purchase transaction.
An LOI is a great place to start the process of selling or buying a business. But it's far from the only document you'll need to finalize the sale.
You must make sure to cross your t’s and dot your i’s in a business sale. The process of transferring ownership will go much smoother if you cover all your bases.
But what documents do you need?
Your needs will change depending on your industry and the particulars of the business for sale. The best way to make sure you’ve addressed all your issues is to speak to a local Philadelphia business attorney who can help you with your unique transaction.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.