Things to consider when buying a business in South Florida.
Are you buying a business in South Florida?
Buying a business is a very exciting and emotional process. Whether you are getting ready to pursue your dream of owning your own business or expanding your current company, there are many different things that you must consider when entering into such a transaction. If you plan to buy an established business in South Florida, it is important that you consider the following factors, or else you may get more than you bargained for.
- Debt- does the company you are buying have debt? If so, you need full disclosure
- Federal and State Taxes- are any of these taxes outstanding?
- Sales Tax, unemployment tax, personal property tax- are any of these taxes outstanding?
- Workers Compensation- are there any claims against the company?
- Insurance- does the company have adequate insurance?
- The Purchase Agreement- it is important to draft and negotiate a purchase agreement that will consider all the terms of the deal and adequately protect the purchaser.
- Is the company healthy? How are the company’s financials? You will need to review and study tax returns, balance sheets and income statements for 2-3 years, if possible
- Intellectual Property- does the seller of the business have the proper right to the name they are currently using, or are they infringing on someone’s trademark?
- Commercial Lease- will the seller be able to transfer the commercial lease to the buyer?
- Equipment and assets- what are you buying? Are they in working order? Do you retain the rights to such equipment and assets upon purchase?
- Are there any liens on the business, equipment, assets or property?
- Inventory- what inventory are you acquiring? Is it in working order?
It is important to review and consider the above, to be sure that you know exactly what you are buying.
Regojo Law can assist you with the purchase of a new business in Miami, Broward and Palm Beach Counties. Contact us today to see how we can help.