Houston Corporate & Commercial Law – Business Purchase & Sale
Transferring ownership of a business can be a complex, stressful experience. Although business purchases and sales are often described as the corporate law equivalent of purchasing or selling a home, business transactions can be far more complicated – and involve assets of far higher value – than the typical property transaction governed by the state of Texas’s real estate law.
As such, it is critical for any entrepreneur or business owner to familiarize themselves with the process of transferring business ownership.
Buying an Existing Business
Individuals who wish to buy an existing business must take numerous considerations into account. One of the most important factors in any business purchase is the business purchase agreement, which typically outlines:
- The purchase price of the entity and all financial details related to the closing of the sale
- Any representations and warranties made by the seller, such as the business’ standing with local tax authorities
- Any restrictions or limitations on the business’ activities, such as non-disclosure agreements and non-compete clauses
To avoid future business disputes and litigation, it is critical for an experienced attorney to review the wording and construction of any business purchase agreement.
Selling a Business
Prior to selling a business, owners need to compile a wealth of documents that collectively provide a clear picture of the firm’s health and status. These include:
- Executive summary and business profile
- Two to three years of profit/loss statements
- Balance sheets with appropriate documentation
- Professional certificates and licenses
- All supplier, vendor, employee, shareholder, and customer contracts
- Evidence that the business is in good standing with the state
- Insurance policies with appropriate documentation
- Copies of all appropriate leases
We understand that selling a business is not simply a financial transaction. In addition to substantial sums of money, business owners pour years of “sweat equity” and emotion into the entities they run. For many entrepreneurs, the sale of a business represents a sharp demarcation point – a life change on the scale of a marriage or the birth of a child.
With this in mind, we pledge to compassionately and attentively represent our clients throughout the business sale process, giving them the personalized and undivided service that they deserve during a busy and emotionally charged period in their lives.
Work with an Experienced Houston Business Attorney Today
At The Law Office of Henry A. Jakob, PLLC, we have more than four decades of experience with business law matters related to small, midsize and enterprise-scale companies. Our principal attorney has seen virtually every situation – both common and rare – affecting business owners in Harris, Fort Bend, and Waller Counties. Moreover, attorney Henry Jakob has years of accounting, auditing, and management consulting experience in the business world, giving him firsthand experience and insight in these weighty matters.
Contact Us Today
For more information about how our Houston business law professionals can assist with your business purchase and sale needs or any other corporate law and commercial litigation matters, please schedule a free initial consultation with our business lawyer by calling 832.879.2244 or filling out the online contact form at your convenience.