Lighthouse Legal Services works with business owners to facilitate the purchase or sale of businesses. We have worked with owners of new businesses, small businesses and traditional "mom and pop" businesses in the following industries: restaurants, software developers, automotive shops, hair salons, dry cleaners, retail establishments, car washes, gas stations and many others.
Purchase and Sale of a Business
Purchasing a business-especially if it's your first business-is both an exciting and a risky proposition. Don't be surprised after the fact when all the details of your business purchase become clear. Our experienced business attorneys will help you gain a clear understanding of the business you intend to purchase. We do this by:
- Conducting a lien search with the Secretary of State (called a UCC search) to ensure that you are buying the business, not the former owner's business debts.
- Ordering a Tax Clearance Certificates from the Board of Equalization and the EDD to help detail any back taxes owed by the former owner to the state.
- Verify if any back taxes are owed for previous years by the prior owner and whether any tax liens are in effect.
- Obtain a list of vendors, a review of existing vendor contracts, and information about money owing to these vendors. Ensure that a plan is in place for the owner to pay off these debts prior to closing on the sale of a business.
Conversely, as a business owner, the choice to sell your small or mid-sized business is one of the most important financial decisions you will ever make. You owe it to yourself, your family and your employees to approach its sale with the same careful planning and dedication that you put to work in building your business. Among the many areas that our competent counsel can assist you include:
- The common ways to find potential buyers for your business
- How to use confidentiality agreements when disseminated information to prospective buyers/sellers
- The importance on conducting Due Diligence
- The most common business valuation methods
- Pros and cons of using a business broker
- Standard purchase agreements and related legal documents
- Methods to secure payment obligations of buyer
- How to deal with landlords, franchisors and third parties
Please call (949) 453-7979 to schedule a consultation or contact us.
