Buying and Selling a Business – Legal Considerations by Murphy & Company
Buying or selling a business is an important step for an entrepreneur and should be carefully planned from both a financial and legal perspective. This article will highlight some of the considerations that owners (or future owners) face at the outset of such a transaction.
Business acquisitions are typically either for a company’s “shares” or its “assets”. Some of the differences between these two forms of purchase are discussed below. In either case, the parties may decide to start the process by entering into a “letter of intent” or “memorandum of understanding” in order to settle the basic terms, such as purchase price, exclusivity, deposit, confidentiality, etc. Often these types of agreement are non-binding in nature (apart from confidentiality, exclusivity and deposit conditions).