Business AcquisitionGem McDowell and his associate at the Law Office of Gem McDowell, Lauren Turowetz, represent both buyers and sellers in business acquisition deals. They serve Mt. Pleasant, Charleston, and the Tri-County area. In addition to deals for the sale and purchase of businesses, Gem and his associates also practice in the areas of business creation, business planning, taxation law, and commercial real estate. As corporate lawyers, they are able to see the bigger picture and understand a business’ needs beyond any one transaction. Their priority is always to protect their clients’ interests.
Acquiring an Existing Business: What To ConsiderDuring a business acquisition, having a trustworthy attorney at your side can help you make good business decisions, alert you to opportunities, and help you sidestep potential problems. A skilled corporate attorney can help you make informed decisions at every stage during the business acquisition, including:
Determining whether a business is appropriate for acquisition. At this stage, it’s important to do your due diligence and to learn as much as you can about the target business. Consider whether the business is likely to be successful in the future and whether it will help you reach your own business goals.
Also, consider what kind of acquisition to make. You may choose an entity purchase, where you buy a majority of stock and take over the company, or an asset purchase, where you buy the company’s assets and create a new entity to buy them. One potential drawback to an entity purchase is that the new owner will take on the old owner’s debts and both known and unknown liabilities. There are tax implications associated with each type of acquisition that must be considered.
Drawing up the acquisition agreement. The acquisition agreement is the essential document that contains the details of the transaction, including who is buying what from whom, for how much, and in what way. Depending on how large and complex the business is, the acquisition agreement may be large and complex, too. It is absolutely essential to work with a skilled business attorney to draw up an agreement that keeps your best interests in mind. Your business is as unique as you are, so each acquisition is different and there’s no “one size fits all” form agreement.
Ensuring the transaction goes smoothly. If the other party does not abide by the agreement, you will need an attorney to go to bat for you.