Similar to selling a business, buying a business in Michigan is a highly complex process. Both sides of this transaction have specific legal requirements. Aspiring business owners that do not follow proper protocols may end up with unforeseen consequences.
For instance, if a buyer does not conduct extensive research to determine the value of the company, they may end up significantly overpaying. Also, it’s important to understand that certain business purchases mean that the buyer is taking on the seller’s debt and other liabilities.
Hoeg Law has extensive experience with mergers & acquisitions transactions. We use our knowledge and experience to provide strategic counsel for entrepreneurs and aspiring business owners during this major decision.
Learn more about buying a business in Michigan below or contact us for a free consultation today.
How An Attorney Helps With Buying a Business
Hoeg Law has years of experience in guiding small business, mid revenue business, and even larger companies through various stages involved in business transactions. Below are several ways we help to facilitate the sale of a company.
Business Sale Negotiations – We provide legal counsel during the negotiation stage. This includes reviewing necessary details such as the seller’s financial situation, assets, liabilities, etc. Reviewing these details will provide legal protection for the buyer and help determine the actual value of the company.
Contracts – Contracts will always be a major part of any commercial transaction. Hoeg Law is very familiar with commercial contracts and helps with the drafting, review, and negotiation of these commercial documents related to mergers & acquisitions. This includes: Business Purchase Agreements, etc.
Transaction Diligence – Hoeg Law helps clients with the process of transaction due diligence in M&A deals. This includes parties on either the buying or selling side of the deal. Transaction diligence involves the investigation and verification of an investment opportunity.. When purchasing a business/making an investment, it’s important to first gather information and verify details for a multitude of reasons. Simply put, transactions that go through a due diligence process yield a much higher chance of success.
Stock Purchase Agreements – This type of contract lays out the agreement between the buyer of a company shares, and the seller. A stock purchase agreement protects both sides of the transaction.
Asset Purchase Agreements – An Asset Purchase Agreement (APA) is basically the final agreement between the buyer and seller of a companies assets. In this document, the seller lays out specific terms associate with this transaction (i.e price, payment terms and conditions, etc). Here’s an example of a Michigan Asset Purchase Agreement.
Business Sale Attorney
Whether this is your first business purchase or your 50th; it’s necessary to consult with a business lawyer that’s experienced with commercial transactions in your state. Taking this step will protect you or your company against liability and also maximize the value of your commercial transactions.
Hoeg Law provides big law firm experience with a personalized small firm approach. Our law firm is located in Northville, Michigan. We serve clients within our local area as well as all throughout the state. This includes clients that are located outside the state and wish to conduct business within Michigan.
If you’re looking to buy or sell a Michigan business, or have other legal concerns related to mergers and acquisitions, contact us for a free and confidential consultation today.