Business Closings usually begin with a friendly handshake between a Seller and proposed Buyer.
Too often, after the Closing, there is “Buyer remorse” or other problems that arise that create a hostile relationship that may lead to litigation. Buyers need to recognize that Sellers often exaggerate the success of their business.
Sellers need to understand that the new Buyer may not be as successful with the business and that may jeopardize the payment of future monies due under the Sale Contract.
The transfer of a business has to deal with the value of inventory, good will, deposits, accounts receivable, accounts payables and many other issues. It is important to have an appropriate Sales Contract that survives the Closing and sets forth the precise terms and understandings of the business transfer.
If litigation arises the Judge will be looking at the Contract to determine the rights and obligations of each party. At Golden Gate Legal Center we can assist you as Buyer or Seller in negotiating, formulating and Closing on the sale or purchase of your business.