When it comes to buying and selling businesses in New Mexico, you need the help of an experienced lawyer from the outset. Factors such as sales price and finding a buyer are indeed important, but even more important is creating the formation of the business deal to protect you from any current or future liability. A seasoned attorney can make sure that your interests are protected.
Selling a Business
A lawyer can make sure that all of your books are in order to present to the buyer, and it is important to have an expert valuation when selling a business. The latter can be harder than it may seem since so many dynamics have to be considered, such as:
- Current earnings
- Future earnings
- Current assets
In truth, valuing any business is not much more than an estimate. What you think it is worth and what it actually sells for may be two different amounts entirely. Your lawyer is able to draw on professional resources in order to determine a fair sales price.
There is more than one way to sell a business, and an attorney who has a lot of experience in handling these types of transactions will the correct way to proceed, with your best interests in mind.
Every aspect of the business sale agreement must be in writing, to protect both buyer and seller. Business sales are always unique and can be complex.
Most seasoned business people will agree that engaging a lawyer when they are buying or selling businesses is one of the first and most important actions they take.
Buying a Business
Mistakes can be costly, especially in business dealings. When buying a business, you will need to review many documents, including:
- Tax returns
- Vendor contracts
- Purchase orders
- Work orders
These are crucial documents and should always be reviewed by an attorney who has experience in this arena. A good lawyer can stop you from making a costly mistake. For instance, to avoid cash flow problems, your attorney will offer advice on how to ensure you have sufficient working capital. He or she will also recommend that all equipment and machinery are inspected before you sign on the dotted line – so you are not encumbered with any unnecessary expense once you take ownership.
In New Mexico, the attorneys at Gilstrap & Associates are on hand to provide you with the advice you need when you are considering buying or selling a business.
We welcome your call at (915) 581-0020 to arrange an appointment to discuss your particular situation. Toll Free: 1 (888) 251-1691.