Purchase & Sale of Business Attorneys in North Haven, Connecticut
When buying or selling a personal residence, most people rely on a real estate agent to guide them through the process and recommend home inspectors and possibly mortgage brokers. In buying or selling a business, though you can use a business broker or investment banker, it is best to secure the help and representation of a seasoned business law attorney who can guide and help you avoid common pitfalls, some of which can occur as early as hiring the business broker or investment banker.
If you are located in North Haven, Connecticut, or anywhere in New Haven County, or the State of Connecticut and you are looking to sell or buy a business, contact the attorneys at DeChello Law Firm LLC. With our experience in representing buyers and sellers of businesses, we can streamline and simplify the process, inform you of issues to expect before they arise, and provide creative solutions to enable you to maximize the benefit of your business purchase or sale.
Types of Business Purchases and Sales
Business owners choose to sell for a variety of reasons. They may wish to retire. They may have health issues that require their attention, or they simply may decide that the demands of managing everything are too much. There are commonly two ways of selling and purchasing a business:
AN ASSET PURCHASE: The buyer purchases some or all of the seller’s assets. The buyer then takes over the assets, such as store fixtures, equipment, and inventory, without taking on the seller’s debts or liabilities.
A STOCK PURCHASE: The buyer purchases all or most of the shares of the owner and becomes the owner of the business with the business retaining all its debts and liabilities. A seller can achieve significant tax advantages with a stock sale. A buyer can benefit from a stock purchase if the business has valuable customer or vendor agreements that are essential to retain.
The Process of Selling a Business
In the sale of a business, ironclad documentation is essential. During the process, both buyer and seller will need to enter into a non-disclosure agreement to ensure that all information revealed during the due diligence process remains confidential. Once parties agree on terms for a purchase or sale of a business, a letter of intent and then a purchase agreement are typically drafted. While a broker may use the standard “fill in the blank” forms for these, an attorney will carefully draft both of these documents to safeguard you as a buyer or a seller.
The letter of intent should be drafted and signed before the buyer begins the due diligence process. A letter of intent will generally address two major issues. One is protecting the seller’s information during the due diligence process. The other is to establish a timeline for future events, including a purchase agreement and a closing date.
A letter of intent can also protect the buyer by including a “no shop” provision that promises the seller will not entertain additional offers while due diligence is taking place.
The second document, the purchase agreement, is essential in business purchase and sale transactions. It will detail what is to be purchased, at what price, how, and by whom. It will also include buyer and seller representations and warranties that both buyer and seller can rely upon in closing the transaction and deal with any necessary conditions that must be satisfied for the transaction to close like the transfer of leases or other contracts, obtaining licenses, or permits; and the retention of key employees. Rely on the experienced attorneys at DeChello Law Firm LLC to counsel and advise you on these critical issues.
During this process, a buyer may need to obtain financing for the transaction or engage professionals to advise the buyer on due diligence matters. Attorneys at DeChello Law Firm can rely on their years of experience in dealing with lenders, environmental, and accounting professionals to provide suggestions to assist buyers in meeting their needs to close a transaction.
After the purchase agreement is finalized and signed, the attorneys at DeChello Law Firm LLC are experienced in dealing with issues and problems and suggesting creative and practical solutions to enable a buyer or seller to conclude the final step and actually close on the transaction.
Purchase & Sale of Business Attorneys in North Haven, CT
If you are buying or selling a small business, do not rely on any attorney – especially an attorney specializing in residential real estate closings. Enlist the legal guidance of attorneys experienced in business transactions. In the North Haven area, and throughout New Haven County, and the State of Connecticut, rely on DeChello Law Firm LLC to help you navigate the purchase and sale of your business safely and securely.