Sale or Purchase of Business

Bryan-College Station-Conroe TX Lawyers for Sale or Purchase of Business

Buying or selling a business is a complex matter best handled with the guidance of a knowledgeable and experienced Texas business lawyer. Whether you are planning to sell a company or purchase one in whole or in part, it is very important to have a clear understanding of what is necessary, as well as tax implications for the method used.

Transferal of Ownership and Purchase of Assets

Often an individual or group who would like to own a business opts to purchase an existing one rather than deal with the difficulties and risks of creating a new enterprise. When a business is sold or purchased, both the buyer and seller need to determine whether this will be achieved through sale of assets or transfer of ownership. As will be seen, this can be a difficult decision, for what is advantageous for one party generally works to the disadvantage of the other. To some degree the needs of the sellers to dispose of the business will dictate their willingness in this regard, and a Texas business lawyer can provide the representation necessary to ensure that your best interests are protected.

Stock Purchase Agreements

One way to purchase a business is by buying stock from shareholders. Sellers generally prefer this method for a couple of reasons: one, they are able to walk away from the enterprise thereafter; and two, they enjoy certain tax advantages in a stock purchase.

Asset Purchase

A business can also be purchased by buying assets. Buyers generally prefer this method because they can choose those assets they wish to keep, and also because the company assumes certain liabilities.

Purchaser Expectations and Concerns

Purchasers of businesses are naturally concerned about the potential of the sellers to start up another company that will compete. Their intimate knowledge of the purchased business makes it particularly vulnerable in such a scenario. For this reason purchasers many times add as a provision to the purchase agreement that the sellers refrain from competing with the business for a certain period of time and within a specific geographic limit.

For More Information on Business Purchase and Sale

Many other issues need to be considered in the complicated process of buying or selling a business. If you are considering a purchase or sale it is vital that you work with a knowledgeable Texas business lawyer who can provide you with the legal guidance necessary to protect your interests. Call Peterson Law Group today at 979-703-7014 or 936-337-4681.