Owning a small business is the American dream, and we all want the freedom, financial rewards, and independence that come with it. The challenge is that not all companies are the same; some are riskier than others. You only know what you are getting once you review all the information and conduct a detailed analysis.
The reality is that most people fail to do their homework when buying a business, which increases their risks. According to the Bureau of Labor Statistics, 65% of all businesses will fail within their first ten years of opening or changing ownership.
Failing to consider all the risks when buying a business could expose you and your company to financial ruin. The most successful business owners always do their homework and review every detail objectively to decide if they want to pursue a particular venture.
A skilled business attorney helps to guide you to make intelligent decisions. Here are some of the ways we help you to make wise decisions when it comes to buying a business.
How to Buy a Business in Texas?
Buying a business in Texas is complex, and you need help navigating the different laws to ensure you do not make critical mistakes. For example, the Texas Tax Code lets the person acquiring a business withhold from the purchase price the outstanding taxes. The seller shows proof by providing a statement or receipt from the Comptroller (a Certificate of No Tax Due from the Comptroller’s Office). A skilled attorney helps guide you and ensure everything is in order.
Failing to understand the different regulations could cost you money and create additional risks for your business. Typically, buying a business follows a series of steps to ensure everything is in order.
Set your goals: First, decide what kind of business you want to buy. It would help if you looked at the location, budget, industry, profitability, size, and your experience and skills.
Research possible businesses to purchase: There are lots of sources that help you to identify potential companies, including attorneys, associations, brokers, and online resources. Our team of skilled professionals has contacts and networks with different business owners looking to sell.
Due diligence: After identifying a business, it is critical to conduct due diligence by reviewing the tax returns, financial records, leases, contracts, permits, and other information. You want to accurately value the company to decide if it has the long-term growth potential you require.
Negotiations: Next, you want to decide the terms, conditions, purchase price, seller financing, payment structure, and other contingencies. A skilled business attorney is experienced in these areas and makes a difference in helping you to get an excellent price, terms, and conditions.
Closing: The closing is when the buyer, seller, and their attorneys coordinate to finalize the purchase. It involves updating registrations and transferring the ownership of assets, licenses, and permits.
Transitioning: The new management takes over and learns about the customers, operations, and employees.
These are some of the general steps for buying a business in Texas. We recommend speaking with a skilled attorney about your situation to give you customized legal advice and help guide you. Buying a business is complex, and you need a qualified professional to help you.
The attorneys at the Weisblatt Law Firm have decades of experience buying and selling businesses of all sizes. Our team gives you customized advice and reviews the different options we could pursue. Contact us now to speak with a skilled attorney about buying or selling a business.
How to Buy an Existing Business?
Purchasing an existing business helps you to streamline your investment and maximize your profits. The challenge is finding those businesses with the potential to deliver consistent returns now and in the future. Here are some things you want to consider before buying an existing business.
Do your homework: Not all businesses are the same, and one that appears to be successful on the outside could be slowly dying. These changes could come from infighting, poor management, or shifts in the economy, technology, industry or customer patterns.
Contact a business attorney: Next, you want to contact a business attorney to guide you. Your research will help you focus and explain your goals to your attorney.
Identify potential businesses: We work with you to identify companies you could buy. Our team uses their knowledge and experience to help you make intelligent decisions.
Negotiate: Our team will negotiate on your behalf to create the most favorable terms and conditions and to look out for you. We review all information to assess the business’s valuation and potential.
Closing: Our team will guide you through the closing with the seller to ensure everything goes smoothly.
We follow these steps to help you successfully purchase an existing business.
Do I need a Lawyer to Buy a Business?
We recommend using a lawyer to purchase any business you are considering. Business attorneys offer unique insights that help you to evaluate the risks and set up a deal that is favorable to you. Our team assists you with everything, including providing legal guidance, conducting due diligence, contract negotiations, licensing, compliance, and protecting your interests.
Our attorneys have access to many different resources and contacts we use to simplify things. You will more accurately evaluate the risks by having a trusted professional who will give you objective advice.
Tips for Buying a Business in Texas?
Buying a business requires careful planning to ensure that you are making prudent decisions. Here are some tips for buying a business in Texas.
Learn about the industry and markets: First, you want to learn about the industry and the demand for the business you want to buy. No two industries or businesses are the same, and you want to learn as much as possible. We recommend being objective and flexible when looking at your targeted industries and businesses.
Contact a skilled business attorney: We recommend contacting a qualified business attorney to guide you through buying a business. Our team will help you make intelligent decisions, including conducting due diligence, access to various resources, negotiations, closings, and transition assistance. We ensure everything goes smoothly, so you can focus on growing your new business and making money.
Following these tips will help you to avoid making critical mistakes.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
