One of the most common mistakes in buying or selling a small business is the assumption that it is a simple process and that the risks of a problem are very minuscule.
In fact, buying or selling a small business in Minnesota is a more complicated type of transaction than other types of sales, including property sales and sales of business assets. Too often mistakes are made during the sale that creates problems for the buyer and the seller, all which can lead to complications and even the risk of litigation after the sale.
To avoid these types of issues, both buyers and sellers should consider using a business sale attorney. Offer very different services than a business broker or agent; the attorney can advise either the buyer or the seller on legal matters with regards to the sale and purchase.
Understanding Legal Liability
It is important for buyers and sellers to understand their legal liability as it pertains to current or future lawsuits and legal issues. This may occur if a former or a current employee is suing the business for some type of discrimination or unfair treatment.
Additionally, there may be violations of local or Minnesota state laws that the seller has not dealt with that may cause complications for the buyer. An example of this could be an environmental issue that was caused by your business or that the business may have had some role, even if it is not direct.
Before signing any documents as to the purchase or sale of the business, it is a very wise decision to have them reviewed by business sale attorney. This is true even if a business sale attorney for the other party developed the documents.
This will ensure that your best interests are reflected in the contracts and agreements, and there are no gray areas that may cause problems in the future.