Buying or selling a business is a huge decision that will require a lot of thought. Performing the right due diligence is one of the most important things that you can do to ensure you are happy with your decision. When it comes to buying an existing business, the due diligence will look at the company you are interested in to help determine if it really is a good investment.
When selling a business, performing good due diligence will help to ensure your buyer is legitimate, that you are getting a fair price, and much more. Taking the time to learn what due diligence is and how to do it properly will help to protect all your investments.
Performing Your Own Due Diligence
Whenever you are making a major business decision, especially those that involve the purchase or sale of a business, you will want to start by doing your own basic due diligence. This is simply the research you are able to perform on your own. In most cases, this will be done as the normal part of deciding whether you seriously want to buy or sell a company.
While performing your own due diligence is a good, and essential, step in making this type of major decision, it is important that you don’t think the research ends here. Most people do not have the experience or resources needed to perform in-depth due diligence of this type of research properly, which could result in missing key information that is required for this type of decision.
Working with an Experienced Attorney
If you believe that you want to seriously consider buying or selling a business, your next step should always be to contact an experienced business attorney. An attorney will be able to perform much more detailed due diligence, and provide legal advice throughout the process. There are several things that make the due diligence performed by an attorney ideal for this type of situation:
- Risk of Lawsuits – One of the most obvious things that an attorney can do is work to evaluate what potential lawsuits you may face when buying or selling a specific business.
- Discovering Debt – An attorney can investigate the financial history of a company, including many types of debt that the average person won’t be able to find.
- Real Estate History – Many businesses will come with various real estate assets. Having an attorney investigate the title history and other aspects of the property can be invaluable.
- Reviewing Contracts – There are many different types of contracts that may be relevant when buying or selling a business. Having an attorney available to write or review the contracts will help ensure a smooth transition.
An attorney will help provide you the information you need to decide whether this type of business transaction is a good fit for you. In addition to the tools and resources they have available, it is the attorney’s experience that really provides the most value. If you are thinking about buying or selling a business, make sure you contact us to schedule a consultation first. We’d be happy to discuss your situation and help you to make the best possible decisions.
Carla D. Aikens, P.L.C.
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