Posted on 03/27/2017 4:13:53 PM PDT by WhoisAlanGreenspan?
That is true only if total cash deal. If holding note on business or real property, must have airtight deeds of trust and repossession clause.
Give you $5 bucks free and clear
You need a lawyer to draw up an asset purchase agreement regardless of the size of the deal. Playing with fire otherwise. No, dynamite.
That was my assumption by his post, that it was a cash deal and there was no mortgage deal that could be reneged by the seller at some future point in time.
Only if your State requires it. Some do; east coast, mainly. Most don’t.
I have found few lawyers are worth their weight in dog poop. Some are great and provide a good service at a fair price. Most are gougers that prey on people using fear, uncertainty, and doubt.
“If you go to a lawyer, they are going to download a standard form and fill in the names.”
That is EXACTLY why I don’t care for attorneys. They preach FUD, but they use something from an online website.
Some folks a hand shake is good enough, if they are a Lawyer or suggest getting a Lawyer involved, I’d get a Lawyer and 3/4 of the purchase price up front (non-refundable) 30 day pay-off because on day 31 the Signs will announce that the said business and property is for sale.
Me? I would get a very clear basic agreement a down payment and then just let the Banks do the Lawyer stuff, THEIR Lawyers don’t seem to think it is a Game or think they have to compare ovaries / testicles while they Party on Clients $.
YES. Get a good Attorney.
Equally as important get a good CPA to review the structure of your sale for Tax Liability purposes.
I’ve sold several businesses including property and not, carried back paper, done lease purchase, stock sales.....
No matter how small the sale...have it set up by an attorney and CPA that can work together.
WORTH IT
Donate it to FR. I’ll call the main office and tell ‘em to clear out.
If you’ve owned and run a business presumably you’ve used a CPA. Ask him/her who they would use if they were selling a business. They will have had dealings with most of the business oriented attorneys in your area.
It scores something like 6 to 1 for getting an attorney. We, yes 'we' (I have a business partner in all this), have yet to exhaust all the leads we have towards finding a lawyer for this whole deal.
The buyer is offering the vast majority up front and six months to pay the balance of less than 10% of the total. We want that balance applied to the property so we have a tangible asset just in case. Of course there's notification of property insurance if we still have an interest.
So it's a small business no doubt, but it's also complicated.
That’s an excellent suggestion. Just switched to a new accounting firm this year, long story. Had spoken to the old guy on the subject but never mentioned with the new ones.
Thanks!
Hire a good lawyer and business analyst. Don’t fudge any of your stats.
My opinion is to get a lawyer unless the value of the business is nothing that anyone would want squable over.
My only warning would be to not let the lawyer re-negociate the main terms of the deal. Lawyers can be deal breakers not deal makers. Have him take your terms and do what is needed to protect you.
“As a CPA myself I agree.”
My sympathies.
I feel for you!!!
I have seen several multi million dollar businesses given away for free due to incompetent attorney’s advice.
Is the business incorporated?
Have you drained the cash and A/R from the business prior to sale.
Is going concern value greater than liquidation value?
Is it a cash sale, seller financed, exchange for purchaser’s stock.... many questions need addressed as they all have consequences.
It’s a charmed life for sure......Do I really need the sarcasm tag?
It’s a stressful, burnout occupation. Thus my screen name.
The problem is it’s much more difficult to get rid of clients and get out of business than it is to build a practice.
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