Mistakes That Are Commonly Made When Purchasing A Company

Mistakes That Are Commonly Made When Purchasing A Company

There are several mistakes that entrepreneurs in Louisiana and elsewhere tend to make when purchasing their first businesses. For instance, they may take on more debt than they can afford to repay. Individuals who spend too much to acquire a business may not have the cash needed to pay employees or take other steps to expand the company.

It is also a mistake for a person to purchase a business that he or she is incapable of running. An entrepreneur who doesn’t have the skills, knowledge or passion for a given industry is wise to stay away from companies within that sector. Regardless of what type of business a person wants to buy, it is important to do due diligence before completing a transaction. At a minimum, a buyer will want to know why the company is being sold. He or she will also want a clear idea of a company’s financial health before agreeing to become its new owner.

Legal Peace Of Mind Is Just A Click Away

Call For A Consultation 225-763-2272

A due diligence team can help decipher financial statements and other records that a seller provides. Buyers should never accept anything that a seller says without verifying that information first. Even if a company seems like it is doing well today, a seller won’t necessarily disclose any problems that it has now or could have in the future.

When buying or selling a business, it is important to have as much information as possible before the transaction is final. An attorney may be able to help buyers obtain as much information as they need to make an educated decision about whether a company is worth buying. Legal counsel may also help buyers pursue legal action if a seller withheld information or otherwise misrepresented the state of his or her company.

Recent Posts

Categories

Archives

Over 40 years of Experience

Accessible. Accommodating. Your Partners In The Legal Realm

We are not just your attorneys, but your partners in the legal realm. As in any partnership, we believe communication is key. We ask the right questions to learn about your situation and goals. Then we work with you to design a resolution strategy that makes the most sense for you or your business.

As your case progresses, you will find that we are easily accessible by phone, text or email. We strive to be accommodating in setting appointments around our clients’ busy schedules, even if that means early mornings or late evenings. We pride ourselves on creating a welcoming, helpful environment.

Call For A Consultation 225-763-2272

The Partnership

Begins With A Consultation

Andrew B. Ezell & Andrew K. Nicolas
Andrew B. Ezell & Andrew K. Nicolas

contact us today

Fields marked with an * are required

"*" indicates required fields

I Have Read The Disclaimer*
This field is for validation purposes and should be left unchanged.