Protecting Your Interests When Buying or Selling a Business
in Orange County
Buying or selling a business is a significant financial decision that requires careful planning and legal expertise. Whether you are a buyer looking to acquire a business or a seller ready to part ways with your company, the process can be fraught with potential pitfalls and legal challenges. This is especially true in Orange County, where the market is competitive, and the stakes are high.
Common Pitfalls in Business Transactions
In the realm of business buy/sell transactions, things can often go south quickly. Misrepresentation, inflated income statements, and falsified cash flow records are just a few of the issues that can arise. These problems can lead to financial losses, legal disputes, and even the failure of the transaction altogether. An experienced business attorney like Valerie L. Kramer can help you navigate these challenges and ensure that your interests are protected throughout the process
The Importance of Legal Representation
One of the most critical steps you can take when buying or selling a business is to engage a qualified business attorney. An attorney with years of experience in business law can provide you with the guidance you need to avoid common pitfalls and make informed decisions. Whether you are the buyer or the seller, having a legal expert on your side can make the process smoother, more profitable, and less stressful.
Valerie L. Kramer is available to provide buyers of businesses professional representation and knowledgeable counsel to make the process smother and more profitable while pigeonholing shielding you from nasty tangents that so often occur post purchase. She is likewise accessible to help sellers of businesses sidestep the minefield they have little clue they are walking into. Buying or selling – you can do a great deal to protect yourself by engaging a business law attorney before you finalize your upcoming deal.
Representing Buyers and Sellers in Orange County
Buying Selling a Business – We advise clients on either side of the sale of a business in Orange County, making sure their rights in the transaction are fully protected and the most common post-sale pitfalls are discussed and firewalls in place to protect you even better.
Unfortunately, many buyers and sellers drive down to their local Staples to grab whatever form says “Business Purchase Contract” on it. We understand. People do this to save the expense of an attorney. Unfortunately, that is short sighted considering the money that is likely on the table. The courts are often the end destination of such hasty deals. An off the shelf one-size-fits-all ‘legal form’ always manages to not cover the very specific elements of your purchase or sale. In the end, your own personal and financial interests may be overlooked or compromised. The cost of doing a purchase or sale of a business correctly is a small cost when you consider the long picture. Lawyers phones ring off the hook from people who confess: “If I had it to do over again, of course, I would have done ____ and ____.”
Avoiding One-Size-Fits-All Legal Forms
Many people make the mistake of using generic legal forms when buying or selling a business. These forms, often purchased from office supply stores or downloaded online, do not account for the specific details and complexities of your transaction. While they may save you money upfront, they can lead to significant legal problems down the road. An experienced business attorney will customize the purchase or sale agreement to fit your unique situation, ensuring that your interests are fully protected.
Fully Understanding the Business
Before purchasing a business, it is crucial to fully understand all aspects of the company. This includes any ongoing problems, potential future issues, and the true value of the business. Sellers may not always be forthcoming about their reasons for selling, and there may be hidden liabilities that could affect the profitability of the business. Valerie L. Kramer can help you investigate the business’s value and sustainability, so you can make an informed decision.
Two Examples:
- A seller of a busy accounting and tax preparation business – who (secretly) knew that two former employees were seeking a wrongful termination attorney to file a lawsuit for years of missed breaks and lunches. These two had been fired for “retaliation” for speaking out to the labor board. The issue was unresolved, and it was a potential legal mess. That mess could have resulted in a huge lawsuit that would be the corporation’s problem and the problem of the new corporate officers. Such a lawsuit based on state and Federal statutes could easily seek $330,000+ settlement.
- A seller of a business was selling his very profitable franchise – that did roof inspections during the escrow process for homeowners selling their homes in California. What wasn’t shared was that all the homes that required the roof inspection for a reverse mortgage, were no longer going to require them in 14-months (a huge percentage of the existing sales). The price of the business, based on inspection sales, given a new business environment on the horizon was overpriced and possibly misrepresented. It was very likely that the schedule of payments could not be met following the purchase due to a potential future decline of inspection requests. That’s exactly what happened.
Investigating the Business’s Value and Sustainability
One of the most important steps in purchasing a business is conducting a thorough investigation of the company’s financial health and future prospects. This includes reviewing corporate records, security interests, loans, and any pending or potential litigation actions. An experienced attorney can help you draft or review the purchase agreement and any other contracts the business is party to, ensuring that you fully understand what you are getting into.
Call Valerie L. Kramer for a Free Phone Consultation
Buying or selling a business in Orange County requires careful planning, legal expertise, and a thorough understanding of the transaction’s complexities. Engaging an experienced business attorney like Valerie L. Kramer can help you avoid common pitfalls, protect your interests, and ensure a successful transaction. Whether you are a buyer or a seller, Kramer’s knowledgeable counsel can make the process smoother, more profitable, and less stressful. Don’t rely on generic legal forms—contact Valerie L. Kramer for customized legal services that protect your rights and interests.
Contact Valerie L. Kramer at (714) 395-5669 whether your business is in Orange County, Los Angeles, or Riverside, she can provide you with experienced legal services you require to buy, sell, or keep your business protected and thriving. We are dedicated to helping Orange County business owners make educated, informed decisions about their business endeavors and opportunities.