Every business has a life cycle. Business owners spend years brainstorming, planning, adapting, and working tirelessly to grow their companies into thriving enterprises. Eventually, most businesses reach a point at which ownership must transition. This may take the form of an outright sale to an unrelated third party, an alliance with a strategic partner, a transfer to family members, or any number of other creative structures.
We have seen certain legal issues arise when businesses are in transition. Among the most common are:
- How and when will the business owner be compensated?
- Will the owner remain personally liable for any company liabilities?
- May the owner distribute the company’s cash or other similar assets before or as part of the transition?
- What role, if any, will the business owner have following the transition?
- Will the business owner be restricted from engaging in certain activities after the transition?
These issues, along with many others, must be carefully negotiated and addressed in the transaction documents. Careful planning and document drafting by a skilled professional helps avoid confusion and potential costly liability down the road. Our experienced business team stands ready to help, whether your transaction is simple or complex.
Contact our team today.
(817) 548-1000