If you are interested in buying a business in New Jersey, the experienced team at The Law Office of Jonathan Fleisher, Esq. can help. As you consider how to approach a purchase, you’ll want to ensure that understand the process and laws of New Jersey that may impact your purchase. Every purchase of a business has its own unique set of facts and circumstances. Ensure your legal and financial rights remain protected by contacting our experienced business attorneys today at (732) 360-6409 for a free consultation.
Do You Need an Attorney to Buy a Business in New Jersey?
Although it is possible to purchase a business without an attorney, working alongside an attorney that is knowledgeable regarding buying a business in New Jersey could help in a variety of ways. Typically, a buyer of a business will meet with an attorney at the very beginning of the purchase process. At this time, a buyer can discuss their overall financial objectives and timelines. By meeting early and defining objectives, a buyer may save considerable time and expense over the long run throughout the purchase process. While it is not a legal necessity to have an attorney to buy a business in New Jersey, our experienced business attorneys at The Law Office of Jonathan Fleisher, Esq. can help clarify any potential red flags in the sale and also recommend solutions to potential problems that might arise in each particular situation.
Experienced business attorneys can help in several other ways as a buyer makes decisions regarding purchasing a business, including:
- Representing a buyer in discussions with the seller or seller’s representative
- Preparing any confidentiality agreements that may be required between a buyer and the seller
- Ensuring that a buyer does not agree to a purchase deal structure before it has been vetted thoroughly for legal and financial reasons
- Fighting for your legal rights throughout the purchase process
Depending on your unique situation, a business attorney may suggest other forms of documentation that might be needed throughout the process. It is recommended that if you do decide to use an attorney that you consult with them early and as often as is needed throughout the purchasing process.
How Important Is Due Diligence?
When you are buying a business in New Jersey, it is recommended that you participate in a thorough and rigorous due diligence process prior to the purchase being finalized. Due diligence is the process of reviewing the sale and many other items in advance related to the transaction. Due diligence can include examining the following business records:
- Seller’s financial books
- Tax returns
- Employee structure and employee contracts
- Outstanding litigation or legal claims
- Employee benefit plans
- Vendor relationships and contracts
- Insurance coverage
- Real property or other assets owned by the seller
There may be other items as well that you might want to request and review in the due diligence process. Having an attorney throughout this time can help a business buyer understand all of their legal options and rights.
Additional Considerations for Buying a Business in New Jersey
Many experts recommend that sellers approach purchasing a business as you would starting one: consider how you would form each part of the company and think through whether anything appears to be legally or financially concerning. Below are a few areas of the business that you may want to pay special attention to throughout the buying process.
Financing
A key question that buyers will likely ask early in the process is how the financing for the transaction will occur when buying a business in New Jersey. There are many ways to structure a purchase agreement and working closely with a business attorney or financial advisor can help you understand all of your financial options.
Employees
Often, when purchasing a business it is very common for the company to have employees that will become part of the sale. This is important for continuity once the ownership has changed and ensures the new owner that the business will continue to operate without ceasing.
However, employees as part of a business sale are not always considered carefully. Buyers should discuss their desire for employees to be guaranteed as part of the business transaction, if that is their preference. The continuation of these employees once a property is purchased is not guaranteed and often requires conversations and commitment from these individuals specifically. Because of this, it is recommended to have these discussions as early as possible and to guarantee continuity once a sale is finalized.
Insurance
As part of the due diligence process, a buyer will want to ensure that they understand the types of insurance policies that the seller already holds. Insurance can impact the sale of a business and may potentially cause issues with financing so getting an understanding earlier rather than later of what gaps may exist is beneficial and will save a buyer time and money over the course of the deal and throughout subsequent ownership.
New Jersey Specific Laws
The State of New Jersey’s Division of Taxation has specific laws regarding how a business may be taxed based on how they are structured. The experienced business attorneys at The Law Office of Jonathan Fleisher, Esq. can work with buyers of New Jersey businesses to ensure that the purchase is legal and protects future assets while also complying with local taxation laws.
Regulatory Approvals
In addition to local laws, depending on the business that is being purchased in the state of New Jersey, there may be additional governmental or regulatory approvals needed. Each situation and sale is different and our experienced attorneys can guide buyers on what may be needed throughout your negotiation and purchase agreement.
Contact Our Experienced Business Attorneys Today
There are many steps to buying a business in New Jersey. Our experienced team at The Law Office of Jonathan Fleisher, Esq. can discuss how to approach a purchase in your specific situation. Contact our office today at (732) 360-6409 for more information.