Skip to main content

Due Diligence Before Buying and Existing Business.

For some entrepreneurs buying an existing business can be a less risky proposition.   There are many good aspects to buying an existing business such as reduction in start up costs and inventory.  There are also some downsides like business debt and issues with current employees and management, in addition purchasing cost may be much higher than the cost of starting a new business.  This is why doing your due diligence before buying an existing business is very important.

Once you have found a business that interests you, it is important that you do your research.  How much is the business worth? We always recommend our clients to get a professional to make that determination. Other examples of issues to consider are contract and leases, financial statements, property documents, customer lists, sales records, advertising materials, employee and manager information and contracts.  You should also review the business tax return so you can assess profitability and tax liability.


Buying an existing business is not an easy task it is always recommended to get professional help of an attorney to review the legal and organizational documents of the business.  In addition an accountant can help with a thorough evaluation of the financial condition of the business.

For more information  please contact our office at 201-880-5563 or visit us at www.ruizdoolanlaw.com for a consultation.



Disclaimer: The contents of this website are of general nature and not intended to be a substitute for legal advice or the formation of a lawyer-client relationship. In order to be properly represented, please contact your local professional. In addition, the information given on this web site has been composed by a New Jersey attorney practicing exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor should this website be construed as an attempt by the author to practice law in any state other than New Jersey. If you have any question regarding this website please contact our office directly at (201) 880-5563.
ADVERTISEMENT: This website contains attorney advertisement within the meaning of the Rules of Professional Conduct governing the practice of lawyers in the State of New Jersey.  This website is considered an “advertisement.” Before making your choice of an attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If the representations made on this website are inaccurate or misleading, you may report this to the Committee on Attorney Advertising, Hughes Justice Complex, P.O. Box 037, Trenton, NJ 08625.

Comments

Post a Comment

Popular posts from this blog

Landlord's Return of Security Deposit to Tenant

The complete text of New Jersey’s security deposit law can be found at New Jersey Statutes Annotated 46:8-19 to 26. In New Jersey, generally a landlord must return the security deposit within 30 days after tenant move out or lease termination. The landlords are also responsible to return any accumulated interest or earnings. There are other situations in which the landlord has to return the money faster.  In the case in which a tenant has ended their lease because they are a victim of domestic violence, the landlord has 15 days to return the security deposit. Also, if a tenant has been displaced due to a floor, fire, evacuation or condemnation of property, the landlord is required to return the security deposit within 5 days. A landlord may be able to keep all or a part of a tenant’s security deposit for unpaid rent and for damage to the property in excess of normal wear and tear.  However, the landlord is not allowed to make any deductions from the security deposit unt...
Post a Comment
Read more

Advance Health Care Directives in New Jersey

It is the unthinkable but ever so possible. What happens when a person suffers from illness or injury that renders incapable of deciding his/hers medical treatment?   This is when an Advance Health Directive will give you the security that you need to know your wishes will be follow through. An Advance Health Directive is a legal document which provides information as to your treatment preferences. There are three kinds of advance directives: 1) Proxy directives: This is when the person gives legal authority to a person he/she trust to make medical decisions on his/her behalf.  This is also known as durable power of attorney for health care. 2)  Instruction directives:   In this situation the person gives written directions that tell his loved ones what kid of treatment he or she wishes to accept or refuse. This is also known as a Living Will. 3)  Combined directive:   the person selects a health care representative and provide him or her with a state...
Post a Comment
Read more

NEW JERSEY EQUITABLE DISTRIBUTION

New Jersey is an Equitable Distribution State. This means that marital assets will be divided in a manner that is considered fair but not necessarily equal for the parties. Below we have developed an outline to give a general overview on Equitable Distribution in New Jersey. Equitable Distribution in New Jersey an Outline Overview. I.         Assets subject to Equitable Distribution a.         Assets that are Acquired During the Marriage b.       Assets acquired in contemplation of marriage II.       Assets Immune by Statute a.        Premarital – except the increase in active assets value due to efforts of non-owner. b.       Inheritances c.         Gifts from third parties III.     Specific Assets: Subject to Equitable Distribution a.  ...
Post a Comment
Read more