Buying or Selling a Business

Many people don't realize how important it is for a lawyer to get involved in the purchase and sale of a business early on in the process -- even before the agreement is signed. We believe it is important to sit down with our clients prior to either submitting or accepting an offer to purchase.

One of the factors to consider is whether the transaction should be based upon the sale or purchase of assets or shares. Purchasers usually prefer to purchase assets. In this way they can select only those assets which they want to buy and liabilities which they want to assume. In a share purchase, all assets and liabilities of the business are transferred to the purchaser.

Whichever method is chosen it's important to have an experienced lawyer involved. Many searches need to be conducted against a corporate vendor to ensure it has the capacity to sell its assets or shares, is not bankrupt or is not selling assets or shares which are being pledged as security or collateral to its bank.

Additionally, it is vital the sale of assets be subject to the bulk sales act to ensure that creditors of the vendor are paid amount owing to them. Failure to abide by the requirements of this act could actually avoid the sale months after closing.

Whether it's a home-based business, a franchise or large operation, we can assist you in your commercial transaction needs. Contact us to arrange an consultation.