If you are looking to sell your business it’s important to have trusted attorneys by your side. You've invested considerable money, time, and effort into building and growing your business, so while selling it might be emotional, a good attorney can help to make the transaction smooth and successful. Hiring an attorney can alleviate the stress of dealing with uncertainties and significantly reduce your risk of financial liability, even after the sale is finalized. Let’s take a look at how business attorneys help assist their clients in the sale of a business. As a business owner, your focus is rightfully dedicated to the details that make your company successful, but there are many complex steps to selling a business that require specific knowledge and careful planning. A mergers & acquisitions attorney understands the business sale process thoroughly. They will guide you through each stage of the process, ensuring you are advised of potential threats, presented with strategic advantages, and prepared to handle the transaction efficiently and effectively. A good attorney doesn’t simply draft documents, they can help you improve the structure of the transaction itself. From optimizing the tax impact to the owners, to limiting your financial liability post-closing, good legal representation can help you earn, and keep, the highest return on your years of hard work. Selling a business is almost never a handshake deal or an as-is sale, and if you don’t have a full understanding of the multitude of promises implied by the sale of a business, you could find yourself liable for broken promises you didn’t even know you made. In structuring a sale transaction, a good attorney can help you determine the most mutually beneficial way to receive the fair value of your business. With creative planning of the payment mechanics, you can increase your ultimate payout, limit costly contingencies, and even plan for unknown elements of future-value, enabling you to receive fair compensation for difficult-to-value aspects of your business. When it comes time to draft the documents, an attorney can help you negotiate the terms, and create a contract that is clear, thorough, and easy to understand. A professionally-drafted transaction agreement not only aids in achieving your goals and objectives, it protects the parties by establishing clear expectations, deliverables, and timelines. This helps to ensure there are no surprises or misunderstandings, paving the way to a smooth and amicable closing. In addition to the documentation between the Seller and Buyer, third-parties are often heavily involved in the sale of a business. In many cases a successful sale requires the involvement of a landlord, government agencies, banks, franchisors, or other service providers like vendors or licensors. If any of these important relations of the business are forgotten or left behind, the liability for any related losses usually falls on the Seller. Good legal representation is critical to keep track of all the details to ensure that nothing, and nobody, slips through the cracks. On Closing Day, an experienced attorney can mean the difference between an exciting day worthy of celebration, or a day full of unwelcome surprises and stressful emotions. By the time the closing arrives, the Buyer and Seller have worked collaboratively, often for months, to create a profitable opportunity for the Buyer and a lucrative exit for the Seller. Missteps at this point can create mistrust, disappointment, and feelings of betrayal, all which can detriment, or destroy, the post-closing relationship. With the help of an attorney, you can rest assured that the Closing will go off without a hitch, and that your hard work getting to the finish line is rewarded. Finally, a good lawyer can make sure your post-closing obligations are fair and don’t overly impact your post-closing plans. It is common for the Seller to make non-competition promises, or to agree to assist the Buyer with training. However, treating these important obligations as afterthoughts can lead to frustration and litigation, creating costly losses and souring the experience. Careful planning with your objectives in mind can ensure that the process after the Closing is as smooth as the transaction before it. A good attorney doesn’t stop looking out for you once pen is put to paper, they will continue to protect your interests until all the dust has settled, and long after. Whether you're experienced in selling a business or not, having an attorney's support is invaluable. They will ensure nothing is missed during the sale, giving you confidence and peace of mind. With your interests safeguarded, you can move on to your next chapter with success. If you're thinking about selling your business, reach out to us today. We're passionate about helping business owners sell and make successful transitions.
Don’t let the fear of raising money stop you from taking the next step!
How do you know if you have an employee or independent contractor on your team?
There is a huge shift that is taking place in the small business world and our economy. Baby Boomer business owners are retiring at record numbers. About 60% of them have no exit plan from their business and need to transfer their company into good hands. This is presenting a golden opportunity for entrepreneurs. If you’ve ever thought about having your own business, now is a great time to look into purchasing one from a Baby Boomer.
Whether you’re new to business or a seasoned entrepreneur, you might have a basic understanding of what an operating agreement is. Today we are going to explain just how an operating agreement protects you and your business and the importance of having one in place for the success of your company. Let’s start by reviewing what an operating agreement is. An operating agreement is a written document used by LLCs to outline the rules and regulations of the business. Its purpose is to govern the decisions that are made for the business, the relations between its members, and provisions for internal operations. Once this document is signed by the company’s members it is an official contract binding them to its terms. There are many reasons to have an operating agreement but today we are going to focus on three ways this agreement protects the business and its members. First and foremost, the operating agreement is a legally binding written contract that all members agree to. This is useful for many reasons. First, it helps to avoid misunderstandings or miscommunications among members. When there is a disagreement, and emotions are high, it is best to be able to reference a document that was written and agreed upon prior to help sort out the conflict. An agreement with written decisions and rules helps to clear up the situation quickly and efficiently. Having a description on how disagreements will be handled provides clarity and confidence on how to move forward. The guidelines in an operating agreement are also extremely helpful when there is an impactful change happening to one of its members such as death, divorce or becoming disabled. It is extremely important to be able to reference clear guidelines on how to handle these types of situations. Next, an operating agreement helps to protect the limited liability status of the business. This means that its members will not be personally liable for the acts of the LLC. One of the main reasons business owners register as a limited liability company is to avoid being personally liable for lawsuits against their company. If the members do not have an operating agreement in place they could remain personally liable to lawsuits that result from business activities. When an operating agreement is in place the court of law is more likely to keep the limited liability protection in place because the business and its members are separate and distinct. Finally, an operating agreement protects your business from inadvertently being governed by statute. When an LLC does not have a written operating agreement, the rules of how the business operates default to the state’s governing rules. Having an operating agreement written by a lawyer specific to your business needs will allow you to avoid default rules being applied to your company. This could be extremely beneficial for the business and its members so that all parties agree on how the business will operate. In the absence of an operating agreement, you are risking disagreement amongst members, litigation, loss of money and time, and potentially the business as a whole. Ensuring that you have a properly drafted operating agreement can be extremely beneficial for avoiding the stress that litigation can bring. Even when you believe you have a handle on the way the business will operate and how members will interact with the business, it's important to have a written agreement to back up those ideas in times of turmoil. We never want to think about the complications that come with running a business but it is important not to turn a blind eye to the most visible risks. While you can find simple operating agreements online, it is always best to consult with a business attorney to understand the unique needs of your business and make sure those needs are addressed in the agreement. Having a good understanding of the potential legal issues your business might face will ensure that the operating agreement adequately protects against those situations. If you have an agreement that is not clearly written or understood you could potentially spend more in lawyer fees down the line. Getting this agreement right from the start is the best option to avoiding risks.
Welcome! Today, we are bringing you the projection of this year’s technology. The research of the newest trends included here will expand you and your colleagues' technological knowledge. After reading, we hope you will have gained valuable insight on how to lead your company towards the most cutting edge year yet!
We know that it can be hard to escape the exhaustion of being a business owner. The hours are long, the work seems endless, and the list of “to dos” can run a mile long. But successfully owning your own business brings more benefits than it brings headaches, and it is a one of a kind accomplishment. If you are a business owner, or aspiring business owner, in need of some inspiration, we've got you covered! Check out these Colorado based businesses that started from nothing but an idea, and have now made it big.
It’s hard to ignore the price increase of things all around us. Businesses and individuals across the country are feeling the impacts of inflation, and it is hitting hard. While costs have been, and continue to, rise, we find that inflation is affecting nearly every facet of Americans' lives. From gas to groceries to the purchase of a vehicle, it seems a bit inescapable.
