It is advisable for individuals and organizations to have an accountant and a lawyer to buy a business. These professionals can review the terms of the transaction as well as the characteristics of the business enterprise and assist you in both protecting your rights and making smart choices throughout the purchase process. Call today to speak with a Scottsdale corporate acquisitions attorney at Lotzar Law Firm, P.C. to learn more about how your attorney can help you.
Why You need an Accountant and a Lawyer to Buy a Business
You may need both an accountant and a lawyer to buy a business because attorneys and CPAs provide advice on different aspects of the transaction. The accountant can review financial statements from the enterprise you are considering acquiring and help you to get a clearer picture of the company’s financial stability. The accountant can also look carefully for any irregularities in disclosures or financial statements from the company that is being sold to identify accounting tricks that may make the organization look more profitable than it is. Finally, an accountant can provide advice on the tax implications of the purchase of the business and can assist with a comprehensive business valuation.
A corporate attorney who has extensive experience with business acquisitions can assist with some of the tasks that accountants do, such as reviewing disclosures and explaining tax implications of a business acquisition. For some business transactions, you may not necessarily need to hire a separate accountant if you work with a lawyer who is experienced enough and who has the necessary understanding of corporate finance. However, you almost always need a lawyer to buy a business even if you do not hire a separate accountant. This is because an attorney does many essential tasks to protect your rights throughout the transaction.
When you acquire an organization, your lawyer can:
- Review the transaction and explain all potential risks. For example, when you acquire a new company, you must conduct Environmental Due Diligence or you face becoming responsible for the costs of cleaning up and remediating hazardous waste if the business has a history of polluting. If the company made a defective product and you acquire the business, you could be sued by consumers in the future unless you properly indemnify yourself. These are just a few possible risks; your attorney will provide a comprehensive explanation of potential liabilities you are taking on with your acquisition.
- Mitigate risks. A Scottsdale Arizona business acquisitions attorney can help you to draft a contract and structure a transaction that includes appropriate indemnity clauses to mitigate future risk. Your lawyer will also advise you on other ways to reduce the potential for future costly litigation.
- Negotiate and draft a Purchase Agreement. Your lawyer can help to negotiate the terms of the acquisition and draft a legally binding contract that protects your interests.
These are just some of the things that your attorney will do to help throughout the process of purchasing an organization. Call Lotzar Law Firm, P.C. today to learn more about why you need a lawyer to buy a business and about the legal services that we can provide to you throughout your transaction.
To learn more, please download our free Good Idea to Have a Buy-Sell Agreement in Arizona here.
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