Business acquisitions can be complex transactions. Whether you’re buying a business or selling a business, it pays to have an experienced business attorney on your side. Here are some basic considerations we can help you with.
Buying a Business
Business purchases may take the form of either a straightforward acquisition or a merger between the acquisition and your existing enterprise. If you’re buying a business for the first time, don’t let your enthusiasm about becoming your own boss or launching a second career keep you from performing critical due diligence, or you may end up with a bad case of buyer’s remorse. You must also have a thorough understanding of the tax and legal considerations that come with business ownership. For instance, if you’re only buying the business’s assets, you won’t also shoulder the debts and other liabilities of the business entity.
Selling a Business
Business sellers may find distinct advantages in entity sales as opposed to asset sales. When you perform an entity sale by transferring the majority of your business’s stock to the buyer, you also divest yourself of that business’s legal and financial obligations. Additionally, you’ll be able to take advantage of the long-term capital gain rate at tax time. The legal structure of the business itself may also dictate what kind of sale you require; for example, if you’re selling your C-Corp, an entity sale can help you avoid being taxed on both the entity and shareholder levels, unlike an asset sale.
Talk to a Business Lawyer
A skilled business lawyer can guide you through the business acquisition process on either end of the transaction. Our team can advise you on smart practices, draw up the necessary entity or asset purchase agreements, and help you close the deal in an equitable fashion. Call us at 512-361-2268 to arrange an initial consultation with one of our experienced Austin attorneys.
