Business Sales & Acquisition Law
If you are considering the purchase or sale of a business, it is important that you consult with a lawyer before taking any action. An acquisition or sale of a business presents significant risks to the parties involved.
Attorney Doug Tull has over 30 years of experience with business acquisitions, sales and entity formation. Doug serves clients throughout Macomb, Oakland and St. Clair counties, Michigan. If you would like to speak with attorney Tull, please contact our Utica office to arrange a consultation.
Risks involved in an acquisition or sale
Many risks to the purchaser of a business can be eliminated if the transaction is structured as an asset purchase rather than a stock purchase. Although the stock purchase may appear to be a simpler transaction, it may expose the purchaser of the business to tax liability and warranty issues. Also the demands of unpaid creditors may interfere with the closing or appear after the closing, exposing the purchaser to additional costs.
One risk to the seller of a business may include the loss of trade secrets, including client and pricing lists, when revealed at the wrong stage in the transaction.
Letter of intent (LOI)
Doug will draft or review a letter of intent (LOI) that outlines preliminary agreement on price and date of closing. If you are selling a business, Doug will see that the LOI provides confidentiality protection during the sensitive period when the buyer is free to back out of the transaction.
Doug will assist and guide you with your due diligence, perform UCC searches for liens and draft a final purchase agreement (definitive agreement) that is binding. Doug works with a qualified Certified Public Accountant (CPA) to review the accounting aspects of the transaction.
If you would like to speak with attorney Tull about the acquisition or sale of a business or have any other questions, please call toll-free, 1-866-TULL-LAW (885-5529), or e-mail our firm. Our office is conveniently located in the heart of Utica, Michigan, at the southwest corner of Hall Road (M-59) and Van Dyke Avenue. (Map and directions) Evening or weekend hours are available by appointment. Home visits are available for the elderly and those with special needs. Credit cards accepted.