To ensure that your business runs smoothly, it is essential to be on the right side of the law.
Business owners may encounter many legal issues, including litigation.
Attorneys are hired by small and big companies for a number of legal reasons, such as buying real estate, complying with labour rules, dealing with taxes etc. Working with a professional lawyer is a must to ensure that the organisation functions in an efficient manner.
In a scenario where there may be legal implications on your business, be sure to contact a business purchase lawyerimmediately.
Here are some situations in which a business purchase lawyer can help:
- Choosing a company structure
- Obtaining payment from a clients in case of absolute refusal
- Handling deals, contracts, and leases that must be signed
- Creating a recruiting process
- Assistance during a merger or acquisition (M&A)
- Intellectual property protection
Purchasing a Business and its Legal Risks:
A buyer should always seek legal guidance before purchasing a business. The primary legal concerns to consider when purchasing another firm or enterprise are listed below:
- Organising the purchase:
A buyer can purchase either the shares of the corporation that owns the target business or the assets that comprise that firm:
- Purchase of a share: The buyer purchases the entire business (including liabilities that he/she may not know about).
- Purchase of an asset (or a company): The assets that the buyer wishes to purchase are chosen by the buyer. This will give you additional options, but identifying and transferring certain assets might be difficult.
Accounting and tax concerns:
Examine how any acquired business is likely to be handled for tax and accounting reasons. Asset transactions are less tax efficient for sellers than stock transactions, which might impact the price paid by the buyer.
Employees:
If a buyer acquires a company, the organisation must keep its workers on the same conditions as before.
Pensions:
The acquirer may be required to assume the target company’s current pension plans or offer transferred workers regulated pension arrangements.
Rights to intellectual property:
The target company’s most valuable asset may be its brand or trademark. Seek legal assistance to ensure that the target company owns the rights, has done a good job of safeguarding the rights, in the event of an asset sale, the rights might be transferred to the buyer.
Assets that are shared:
If the target company is part of a bigger corporation, it may be able to share assets (such as computer systems, real estate, and insurance policies) with other members of the corporation.
Examine if these agreements can be undone without incurring exorbitant expenses or causing significant interruption to the target company’s operations. After the transaction is completed, an agreement can be prepared to deal with how the assets are divided and shared.
Concerns about the environment:
If a buyer purchases a company who is in the manufacturing sector, it is the buyer?s responsibility to take care of the environment and adhere to environmental laws.
Why should you need a business purchase lawyer?
Buying an existing business may be a challenging task. There are several factors to consider, and you must be cautious not to invest in a firm that is struggling or on the verge of bankruptcy.
Asking appropriate questions during negotiations, ensuring that a firm is legally compliant, and obtaining guidance from a legal expert on what sorts of provisions should be included in a final contract are just a few of the advantages of working with a business purchase lawyer.
If you’re thinking about buying a business, it could be a good idea to speak with a local business purchase lawyer before making any offers.
Your lawyer can help you in the negotiating process, to create and evaluate the terms of your purchase agreement, and offer valuable advice to help you obtain the best deal.
Having an expert on your side when acquiring an established business is one of the most significant decisions you can make. The process involves plenty of paperwork, and your attorney will ensure that the entire transaction is lawful, genuine, and valid.
Your business lawyer will also handle the following tasks:
- Conducting due research on the company you want to acquire
- Agreements with employees
- Contracts involving a business partner
- Negotiations with the seller
- Make contact with state officials
- Filing paperwork with the appropriate agencies
- Acquire the necessary permits
- Defend yourself against legal action and liabilities
Looking For Business Purchase Lawyers?
Fit Lawyers are among the top business purchase lawyer in Brisbane and Australia in handling business purchase matters.
Call on 0415 835 733 or email us at [email protected].
