Legal Disputes in the Sale or Purchase of a Business
Legal Disputes in the Sale or Purchase of a Business
Buying or selling a business can be one of the most exciting activities about owning a company. However, in Southern California, these transactions can often lead to disputes but dependable legal counsel can often resolve them quickly. The key to quick resolution is seeking legal advice well in advance.
Many times, disputes can be resolved amicably by communicating directly with the other party. However, amicably resolving disputes is not always possible when interests are not aligned.
Disputes following the sale of a business often include:
- Fraud concerning the customer base or extent of historical sales
- Misrepresentation concerning the financial condition of the business
- Concealment of significant information that should have been disclosed
- Failure to comply with the terms of the Purchase Agreement
- Unfair business practices
- Unfair competition from violating non-compete agreements
- Lease or other real estate issues
If you have a dispute involving the purchase or sale of a business, you should contact an attorney at Brown & Charbonneau as early as possible.
How to prepare when you are buying a business
Avoiding a dispute following the sale of a business requires diligence and transparency. A buyer should carefully review representations made by the seller regarding:
- The financial condition of the business
- Any pending disputes with vendors or competitors which have potential to become claims
- The condition of the real estate if also purchased as a part of the transaction
- Any other information affecting the business going forward
Buyers should always have a transactional attorney prepare and review a purchase contract to ensure costly mistakes are avoided during the transaction.
How to prepare when you are selling a business
Similarly, sellers must be particularly careful about the representations made during the transaction. They should thoroughly investigate the financial ability of the buyer to complete the transaction.
To that end, the help of a accountant or other financial adviser goes a long way to ensure proper financial documentation is disclosed to both sides during the transaction. Without this critical information, a buyer or seller may not have accurate or complete information necessary to conduct the transaction. Disputes often result from a lack of information or a lack of trust during or after the transaction. These are the things a competent California lawyer will help with during and after the transaction.
GETTING LEGAL HELP FROM BUSINESS AND COMMERCIAL LITIGATION ATTORNEYS
Whether your organization has been named as a defendant or you need to file a lawsuit to secure your rights related to the sale of a business, Brown & Charbonneau, LLP can provide the legal representation you need.
Numerous complex issues arise in business sale disputes, including jurisdictional questions, contract interpretation (and identifying all of the relevant transaction documents), evidentiary rules and rules of court procedure. Our attorneys have the background and skills necessary to help make the legal system work for your company.
Brown & Charbonneau, LLP has represented both large and small businesses throughout all phases of the litigation process. Call or contact us online today to speak with a legal professional and learn more about how we can assist with your case.