If you are seeking to buy a business in Revere, then you should take the time to do your due diligence and to carefully review the necessary steps to ensure that the business you are interested in has a high possibility of success.
What Kind of Business Do You Want?
Revere, Massachusetts has all kinds of businesses and is located just minutes from Boston with restaurants, bars, nightclubs, shopping and other retail businesses. As a business person, seek a business with whom you have familiarity or experience in or at least have a reliable partner. You can use a business broker to seek out available businesses for sale or consult trade associations, a Revere real estate lawyer or real estate broker. Ask other business associates in the area if they know of any possibilities.
Obtain and Review the Essential Documents
Every business has documents associated with it and these must be procured and carefully examined by a financial or business advisor and business attorney. These documents include:
- Financial statements such as profit and loss
- List of customers
- Assets and inventory list
- The debts
- Any history of consumer complaints
- List of employees, duration with business and salary or wages
- The lease to see if the landlord’s consent is required or if the existing terms are unreasonable
- Licenses associated with the business
- List of suppliers and associated costs
- Existing liens and unpaid tax liabilities
Once these are reviewed and you feel confident about the business, ask for the purchase price and other material terms in a written document or Letter of Intent that your Revere business lawyer can review. The document will reveal if you are buying shares, which may not include all of them. Determine if the sale price also includes purchase of all of the business assets.
Further, have the business appraised to see if the asking price is within reason or has serious drawbacks or complications that you may not be able to overcome.
Consider an LLC or Corporate Entity
If you have not already done so, consider incorporating yourself or forming an LLC and having your corporation buy the business. There are certain tax benefits and you can insulate yourself from personal liability so that creditors cannot seize your personal assets should the business fail or be sued.
Letter of Intent and Purchase Agreement
Once the material terms of the agreement have been hammered out, a Letter of Intent is usually drafted that summarizes the parties’ understanding so that no major disagreements may later arise and there is no need to negotiate major provisions on the eve of sale.
An important consideration is not only the sale price but what it includes and how you will pay for it. For example, you may have to pay in installments or you might insist that some of the sale price be withheld for a certain time to ensure that particular terms or conditions are met as promised.
Any purchase agreement should have representations and warranties about promises or guarantees made and the liabilities associated with the purchase.
Other contract terms may involve the employees and if they are to be retained. If law permits, you may want the seller to enter into a non-compete agreement so that he or she will not engage in a similar business in the area that will compete with you.
Consider Retaining a Real Estate Lawyer
In some cases, you may have to renegotiate a lease or buy the real estate in Revere that is associated with the business. If so, retain Revere real estate lawyer Deborah Gold-Alexander of Revere. Her practice has included representing the rights of business owners and has counseled clients seeking to buy or sell businesses in Revere. Any real estate that comes with your business should be thoroughly inspected and to see if it complies with city ordinances and regulations, especially if you are thinking of making structural changes. If such changes cannot be made or are costly, you may wish to reconsider the entire venture.
Should you be purchasing real estate in Revere for your business, Revere real estate attorney Deborah Gold-Alexander will review your business objectives and the property to determine if you are also in compliance with federal environmental and clean water laws as well as state and local zoning and other regulations. Call Deborah Gold-Alexander today to discuss any legal issues involved with the purchase of a business.