Baton Rouge Legal Blog

As a business owner, one of the things you have to do is to work with third parties. To protect yourself, you always need to have contracts in place.

Creating contracts can be more complex than you think, though. A foolproof contract is hard to make, but with your attorney's help, you can get a strong contract for whatever situation you're in.

You have always loved one of the businesses in town, and when it went up for sale, you were sad it was going to shut down. Then, you found out that the owner was willing to sell the business with its name and branding. The business is very popular in the local area, so you're thinking about taking it over and making a bid.

Before you buy an existing business, there are a few things you should think about. Here are three tips to remember as you consider taking over.

When a product you purchase is defective, it could pose a hazard to your health. As a consumer, you have the right to pursue compensation if you've been harmed because of a defective product or because the manufacturer or seller did appropriately warn you of the risks of using the product.

There are dozens of kinds of defective products, including things like:

• Sporting equipment
• Cribs
• Furniture
• Vehicles
• Dangerous drugs
• Foods
• Toys

Maybe you're looking to buy a business because you've always wanted to work for yourself, or to diversify or expand your current operation. Regardless of the reason, this is a big decision that will impact you personally, financially, and professionally.

Here are some questions you should answer before buying a business, as doing so will put you on the right path to making an informed decision:

• Why do you want to buy the business? Above all else, you must be clear on why you want to make the purchase. If you can't clearly answer this question, it's time to take a step back.
• What are the financial implications? Buying a business can be (and typically is) an expensive endeavor. You should know how much it will cost, which includes more than the asking price. It is essential to calculate all of the costs of purchase in order to properly value the business.
• Have you reviewed the company's financial statements? Without this, you're taking the company's word in regard to its financial circumstances. Never do that. Before making a final decision, look carefully at the numbers. This financial analysis may prompt you to walk away or restructure the purchase.
• What does the company's workforce look like? In most cases, a company's workforce is its most valuable asset. Get a good feel for the value of these human assets before buying.