Commercial Litigation Attorney, Markotsis & Lieberman, P.C., Discusses the Top 5 Ways to Protect Yourself When Buying or Selling A Business
HICKSVILLE, N.Y., Jan. 30, 2020 /PRNewswire/ -- Buying or selling a business is a complex process. If you are not careful, you could end up making a mistake that could lead to legal or financial problems. It's important to take steps to protect yourself during the transaction, whether you are the buyer or the seller.
Commercial litigation attorney, Markotsis & Lieberman, P.C., discusses the top 5 ways to protect yourself when buying or selling a business.
- Disclose information at the outset
Many disputes during a business transaction stem from something not being disclosed in the beginning of the process. The seller should disclose everything about the business in substantial detail so the transaction closes. Buyers should demand all business information upfront to avoid conflict. - Make a checklist in the beginning of the process
At the very beginning of the transaction, make a checklist of everything that needs to be disclosed. This is helpful for both the buyer and the seller to do so both parties can be sure there are no surprises down the road that lead to conflict. - Be clear about the details of the company's financial information
There are some nuances of financial information that must be clarified to avoid legal issues. For example, profit shown on financial statements as "cash flow" or "real operating profit" may include information like the owner's salary, which inflates what that profit really is. A seller should present the information in a direct way. A buyer should have their accountant review the financial information presented. This will prevent future surprises. - Don't ignore due diligence
For purchasers, it's important to carry out a comprehensive investigation and appraisal of the business before you agree to terms. Review all books with an accountant, look deeply into the market, review all current contracts and leases, and review pending orders. Fully examine everything that is currently happening in the business and use it to understand what could happen in the future, which is important when creating terms. - Get the help of an attorney
The best way to protect all parties involved in a business transaction is to also get the help of an attorney. An experienced attorney can make sure all required documentation is in place and all parties are protected from liability, so the transaction can go smoothly and successfully.
About Markotsis & Lieberman
Markotsis & Lieberman is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.
SOURCE Markotsis & Lieberman
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