Buying a Business: Three Crucial Legal Tips from a Veteran SF Lawyer
Congratulations! You have researched, saved, prepared, and now you are finally ready to buy that dream business. However, before you make a final decision, please allow me, a California business attorney, to offer some legal tips.
Review Every Single Contract
Buying a business involves assuming contractual relationships. You should read every word of each document before making a decision and signing on the dotted line. After all, you do not want to be locked into a long-term marketing contract with the seller’s nephew, who has no background or experience in marketing.
Ask to see everything from the furniture and phone rental agreements to the building maintenance contract. If you do not know what arrangements are necessary, enlist a business acquisition attorney who has the tools and experience to coordinate all of the necessary paperwork on your behalf.
Investigate Employee Issues
If the business you are buying comes with personnel, ascertain whether there are any HR conflicts and claims. Remember: You are taking possession of both the good and the bad. If a firm is in the middle of a contentious labor lawsuit, you could be liable for a multi-million-dollar settlement.
Establish a Payment Plan
Do not pay all at once! Establish a year-long, tiered disbursement plan. This way, if the seller fails to disclose vital information, you can deduct related material costs from the balance.
Connect with a San Francisco Business Lawyer
Let an experienced San Francisco business lawyer handle everything — from facility contracts to intellectual property registration.
As a full-service firm, our team can also help secure any licenses or partnerships needed to set your company on the most profitable and compliant path possible.
Over the past 35 years, James M. Braden, a Harvard-educated attorney, has built a thriving and well-connected San Francisco business law firm. If you are buying a business and need legal assistance, get in touch today to begin the conversation.