For many North Carolina entrepreneurs, buying a business or selling an existing business can be a major undertaking. This kind of business transaction can mean becoming responsible for an ongoing venture or moving forward from a business you have built from the ground up. Learning about the ongoing financial implications of the purchase or sale of a business can be significant, from understanding the tax requirements to ensuring that the deal itself is one that best protects your interests.
When selling or buying a company, it is particularly important to truly understand what is being sold. In some cases, the assets of the business are being sold alone; in other cases, the purchaser is also acquiring its outstanding liabilities. It is critical for both sides to have a full understanding of the complete transaction. Intellectual property is also a major part of almost any business venture, and the transfer of relevant intellectual property can be critical to a successful business transaction.
There are a number of tasks that should be performed before a business sale or purchase, including verifying that there are no outstanding or undisclosed liens against business property and checking title, credit and complaint histories regarding the business itself. In many transactions, the seller of the business will hold a financing note against the buyer.
A business lawyer may help draft financing notes for people selling their businesses or review the terms of a proposed note for those who are looking to purchase a company. In addition, an attorney may be able to draft the necessary documents to ensure that the conveyance takes place and that the sale becomes effective. If you are planning on buying or selling a business, you can visit our page on business transactions to learn more about how an attorney may be of assistance.