So You're Buying/Selling a Small Business

Is your business legally prepared for a major transaction? Many successful small businesses undergo dramatic transitions in their lifetimes. Perhaps you’re looking to grow, and a local competitor is closing their business and retiring. Or, perhaps you’ve seen your successful business grow to the point that a large competitor has noticed, and is ready to hand over your big payout.

From a risks and liabilities perspective, these major transactions are a vulnerable time for business buyers and sellers, alike. Here are some of the ways hiring a competent business lawyer can protect your company through such a process:

A competent business attorney knows the major pitfalls of these kinds of transactions. Did you know that many loans will go into default if a borrower transfers ownership of the collateral or if the borrower company’s ownership is changed in any way? These kinds of risks are rampant in the business transaction arena; a competent business lawyer will help you identify these and other legal hazards.

A competent business attorney can structure the transaction in a way that makes the most sense. Will the transaction be a stock transfer or an asset transfer? Knowing the difference can simplify the transaction and can also help you to avoid picking up unwanted creditor liabilities.

A competent business attorney can draft clear, unambiguous contracts. Is some part of your buy/sell agreement susceptible of two different meanings? Confusing contractual clauses can instigate, drive, and prolong expensive and time-consuming litigation. Entire lawsuits are often driven simply because a contract can be interpreted in two different manners, each of which favors one or the other party. A competent attorney will keep your documents concise and above all, clear.

If your small business is undergoing a major transition, we at Asheville Legal are here to help you navigate that process, and to minimize your legal risks. Give us a call to learn more.

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The attorneys at Wimer & Snider, P.C. in Asheville have represented clients in much of the United States, including North Carolina, South Carolina, Georgia, Florida, California, Virginia, and Texas. We are licensed to practice law in North Carolina and Texas. Our offices are conveniently located in the arts district of West Asheville, NC.   Phone: 828-350-9799

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