If you own a business and are considering buying out a competitor or merging with another business, there are a few things you might want to consider. For example, what do you really want to buy here, what is valuable to you about this other business? Is it the machines and equipment? The brand? Or are you really after the customers and their accounts?
On the other hand, are there things about this business you DON’T want? What about any potential lawsuits or debts, including ones you might not know about? Working with a qualified business attorney can help address any of these concerns and help clarify issues that might come up when drafting a contract to buy or sell a business.
What’s a Merger?
A merger combines two separate businesses into a one business. The terms of your merger contract will dictate which steps you must take to transfer ownership, and what that ownership will look like when the merger is successfully completed. Mergers can be beneficial because the new business owns all assets of both businesses, but a merger also involves taking on all the liabilities and debts of the old business as well, which is not always ideal.
Business Asset Purchase
Purchasing only a business’ assets, instead of the whole business or the stock of a business, means that the buyer simply gets the business property, including intellectual property, such as a name, brand, or good will, without having to take control over a whole new legal entity or the old business liabilities and debts.
Buying or selling a business is a major undertaking, and you deserve sound legal counsel to help you decide how best to accomplish your goals. Limitless Law PLLC is available for a free 15-minute phone consultation at (360) 685-0145, call today to learn more about smoothly transitioning your business to a new owner.