QUESTION

Hi, assuming I'm buying an online business, what do they mean by "attorney is advisable to look at the deal"?

Asked on Mar 26th, 2021 on Business Law - Arkansas
More details to this question:
This is my first time buying a business, I thought only raising the money to finance the purchase was needed, but what is the role of attorney in that transaction? What are they preventing from happening?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Buying a business can be a complicated transaction, and I would certainly think that you would want an attorney to help you negotiate and draft the necessary contract or contracts, and to help you do your due diligence.  Is this an asset sale or a stock sale and do you know the tax and legal implications of both?  Is any intellectual property changing  hands (trademarks, copyrights, trade secrets, etc.) and are these assets protected?  Are there going to be any limitations on the sellers' rights to compete with the buyer post-sale?  What obligations, including contingent obligations, does the business have and could it remain obligated after the sale?  Is there going to be an insurance requirement in case the buyer dies before the purchase price is paid off?  Are there any key employees of the business, and if so are they going to stay with the business?  Will there be ay restrictions on their right to compete with the business if they leave its employ?  Without knowing anything about this transaction, these are a few issues which pop to mind with which a lawyer can help.
Answered on Mar 26th, 2021 at 8:18 AM

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