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- Timothy M. Johnston
- Robert J. Tomei, Jr.
- Alan K. Lenczycki
- Michael A. Goldberg
- Drake W. Shunneson
- Bankruptcy
- Business Formation
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Things to Consider When Buying and Selling Businesses in Illinois
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Things to Consider When Buying and Selling Businesses in Illinois
If you are considering buying a business or selling your business, you may feel overwhelmed with the process. Contracts, filings, and state laws all need to be followed to ensure the legality of the sale, as well as to ensure that you are avoiding potential liabilities and causes for legal action in the future. Finally, the point of either buying or selling a business is to make profitable gains for yourself personally. All these moving parts can prove challenging to navigate. The following are things to consider when either buying or selling a business in Illinois.
The Reason for the Sale
If you are looking to purchase a business in Illinois, you should determine the true reason the business is being sold. Request financial and tax records, and if the business is not profitable, you should reconsider your decision. However, if the business owner is simply retiring after four decades of hard work creating a profitable business, you may feel much more comfortable purchasing the business from him/her. Some questions to consider asking a seller would include:
- Is the business currently profitable?
- Have all taxes been paid to date?
- Are all financial records available to review?
- Are there any pending litigation or claims in court regarding the business?
- Are there any pending government investigations from the Department of Labor, Internal Revenue Service or other entities?
- Are all required licenses and permits obtained?
- Does the business anticipate any drastic changes between now and the time of sale?
- Are there any pending business transactions outside the normal scope of business that would take a substantial amount of money to resolve?
As a business owner selling your business, you should clearly state why you are selling the business, and make all important financial disclosures to any potential buyers.
Legal Contracts and Agreements
Whether you are the buyer or seller of a business, contracts, agreements, legal filings and negotiations will play an integral part in the purchase process. Some of the following are documents you may need to include as you consider buying a business or selling your business.
- Promissory notes and security agreements
- Lease review and lease assignment
- Letters of intent
- Buy and sell agreements
- Non-compete agreements
- State-required filings
- Closing documents
- Non-disclosure agreements
- Asset purchase agreements
- Stock purchase agreements
In either case, if you are a buyer or seller, you may be faced with legal liabilities as you go through the purchase process. Contacting an experienced business attorney can help you understand which agreements are needed, and how best to execute them to protect your interests.
Contact an Experienced Lake County Business Attorney
If you are considering buying or selling a business, a substantial amount of due diligence, financial discovery, and legal contracts need to be addressed. As a buyer or owner, you will need to have contract negotiations, as well as the creation of contracts and agreements that ensure asset protection. The experienced Libertyville business attorneys at Johnston Tomei Lenczycki & Goldberg LLC will work thoroughly and diligently to protect your best interests when buying or selling a business in Illinois. Call us today at (847) 549-0600 or email us at info@lawjtlg.com to schedule a free consultation.
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