People buy and sell businesses all of the time, and for different reasons. Most do it for profit, but others may purchase or sell the assets or stock of a company because they want to retire, need capital for another endeavor, or for an array of other reasons.
Despite this being a common activity, business owners or interested investors should not enter into such deals lightly. At Gilstrap & Associates, P.C., we have decades of experience in helping people both buy and sell businesses. When clients hire us, they can be sure that they avoid these most common mistakes made by inexperienced buyers and sellers:
Taking on the Task Yourself
You are probably correct in being confident that when it comes to running your business, or past investing, you have been successful. But what you likely are not is a real estate or business attorney who will make sure that all transactions are legally sound and that the property is free and clear of any claims, liens and encumbrances.
Our law firm will help you negotiate the most seemingly straight forward of contracts to complex deals and make sure that the transaction goes as smoothly as possible. Some of the most common negotiations we make on a regular basis involve:
- Physical property concerns
- Intellectual property (stock, trademarks and outstanding bills)
Signing Contracts/Agreements in Your Own Name
When a contract is signed in your name, you are personally liable. This means that your home, your vehicle and any other personal assets are up for grabs should the company you buy goes ‘belly up’. By setting up a corporation or LLC, you protect your personal assets and leave only those of the business at stake.
Not Seeking Legal Advice
Buying or selling a business is a major undertaking. As we have unfortunately seen here at our law firm, attempting to save money on broker and legal fees usually only ends up costing new business owners in the end.
The Gilstrap & Associates, P.C. law firm believes in building a strong American economy and we take pride in ensuring that both buyers and sellers are able to sign off on a fair and equally financially advantageous agreement. We have decades of experience in real estate law and we are here to help you.
If you are in New Mexico and are thinking about buying or selling a business, we invite you to contact us today at (915) 581-0020.