You need the assistance experienced business lawyer when deciding to purchase an existing business in New Jersey. With buying a business that is already established you will be expecting an existing customer base, proven operation methods, trained employees and a commercial lease for the right space. While it is a time for excitement, it is also a time to step with trepidation. There are many instances when the owner is selling the business for the wrong reason! Perhaps the current owner is selling the business because it is actually failing, business conditions are changing and the owner wants out before the business downturn, or maybe there are obligations that the owner can’t satisfy.
Some initial questions posed when targeting a business are:
- How was the business value (asking price) derived? What should I offer?
- Who needs to rubber stamp the sale? Are there other owners that need to be involved?
- Are the existing employees going to stay on board after the purchase?
After engaging your business lawyer and financial professional they will help you sift through the due diligence process. During due diligence, all of the financial and legal aspects of the business are reviewed so you can get a true sense of the target business. You will learn, the seller’s history, any legal issues affecting the business, the complete finances of the business including, certified financial records, tax records, contracts, etc.; the business’ future forecast.
You purchase can be accomplished by an asset purchase, a stock or a merger.