Purchasing an existing business in Florida has several benefits. If a company is already established in a good physical location with a loyal customer base, the new owner may leverage this to his or her advantage.
However, buying a business requires attention to detail to avoid other risks involved in this type of transaction. Keep reading to find out how a business purchase lawyer may ease up the process of buying a Florida company.
Business Purchase Lawyer in Florida – Drafting and Reviewing Business Contracts
It is impossible to purchase a business without signing contracts. Regardless of the buyer’s expertise in business, only a licensed attorney has the necessary legal knowledge to draft solid contracts.
It is crucial to determine the legal implications of each term and anticipate potential issues that may arise from imprecise language. When drafting or reviewing contracts, you must work with a business attorney to determine:
- What are the responsibilities of each party under the agreement?
- The payment method
- The assets included in the purchase
- Whether the contract includes the acquisition of intellectual property
- Are the contractual clauses assignable?
- Which deadlines are involved in the process?
- Are the parties insured if things do not go as expected?
- What are the contractual expiration dates?
- Is there a renewal clause?
- Which are the tax implications under the agreement?
Business Purchase Lawyer in Florida – Performing Due Diligence
The process of due diligence is crucial to ensure that the business you are interested in acquiring is financially robust. Additionally, you must confirm whether the information provided about the business’s condition is accurate.
The due diligence process includes an in-depth of the business’s archives and records, as well as the company’s financial history.
When analyzing the company’s certified financial records, an expert attorney will review and filter the essential data, such as:
- Payroll numbers
- Accounts receivable
- Accounts payable
- Business reward programs
- Employee benefits (e.g., healthcare, overtime compensation, etc.)
An expert attorney will review as much information as possible when searching the company’s employee records to assess data like:
- Employee performance
- Forms of employee compensation
- Employee relationships
- Business culture
- Employee morale
The Business’s Legal History
If the company has been involved in any lawsuit, the details involved in each case will provide valuable information about its management, business culture, and financial condition. When researching this topic, an attorney will identify:
- Whether the company was liable in one or multiple lawsuits
- Whether the litigations were unfair or frivolous
- The claims behind each litigation (e.g., employment termination disagreements, lack of quality control, hazard issues from operations, etc.)
Depending on the legal history of a company, a new owner may be sued due to past behavior.
Assessing Existing Leases
It is crucial to identify the existing leases associated with the business. You must work with a business purchase attorney to find out:
- Whether the existing lease agreements are assignable
- Will you assume any of the existing leases?
- What are the financial obligations associated with the existing leases?
- What is the expiration date of each lease?
- Is there a possibility to renegotiate or renew the leases?
- What is the amount paid for rent?
- What is the payment frequency? (e.g., monthly, yearly, etc.)
- Is the amount fixed or subject to annual increases?
- What are the tenant’s contractual obligations?