Buying or Selling a Business in the Twin Cities area?
Let our Experienced St. Paul and Minneapolis Business Lawyer Help
When purchasing a business, the buyer should always complete due diligence. A St. Paul and Minneapolis business attorney can help a buyer with the due diligence process by explaining the various contracts a company has in place and what might be missing. Contracts that may affect the purchase of a business include:
- Non compete agreements
- Employment agreements
- Confidentiality agreements
- Agreements between the company and vendors
- Royalty agreements
The law firm of Steven H. Snyder & Associates is familiar with all types of business contracts and can advise a buyer of his or her rights regarding these contracts. Certain contracts may have to be left in place, while others may be either canceled or re-written on the sale of the company.
Other legal aspects of purchasing a business include any past and current lawsuits. A St. Paul and Minneapolis business lawyer can review any past or open lawsuits and advise a buyer on whether he or she should invest in the company. Often, depending on the outcome of a lawsuit, business may take a downturn or it may benefit a business. Common lawsuits include:
- Violations of non compete agreements
- Violations of employment agreements
- Employee lawsuits, including but not limited to discrimination arbitration or lawsuits
- Noncompliance (contract) lawsuits
If an owner of a business wants to sell his or her business, he or she should contact a business law attorney prior to putting the business on the market. A business law attorney can advise a seller of his or her rights during the transaction. The business attorney may also be able to advise the seller during the closing.Steven H. Snyder and Associates will also advise a seller of which documents must be produced during the buyer’s due diligence phase. Most contracts must be made available to the buyer right from the beginning, including but not limited to non compete agreements, employment agreements, confidentiality agreements, vendor agreements, grants and royalty agreements. Make sure that you have these before you continue considering buying or selling a business.
Determining the sale price of a business may also be complicated. An appraisal of the property must be done, along with an appraisal of the business itself. The business appraisal often encompasses looking at client lists and sales transactions, as these typically incorporate most of the business’s value.
Care must be taken when providing certain information and documentation for a business appraisal because of non-compete agreements, confidentiality agreements and any other agreements. If you want to buy or sell a business and you want it done right, call our Minneapolis and St. Paul attorneys now and let us do things right the first time.