Business Purchase: Frequently Asked Questions
- I would like to loan my daughter money to buy a business but want to ensure I am repaid. What should I do?
- How long do I have to perform due diligence? Will that be enough time for my business lawyer to go over everything?
- How do I know if I have all the documentation for due diligence?
- What does the purchase agreement cover?
- What can you help me with?
I would like to loan my daughter money to buy a business but want to ensure I am repaid. What should I do?
The best way to handle loans between family members is to draw up a contract. You and your daughter can work together to negotiate the details of the contract so that you both find the terms fair.
How long do I have to perform due diligence? Will that be enough time for my business lawyer to go over everything?
You can take as much time as you need to perform due diligence but do make the timeframe reasonable for your sake and the seller’s sake. We will do everything we can to work within your timeframe. We encourage you to see us sooner rather than later to make sure there are no delays.
You can get a checklist of all possible types of documentation from your business intermediary. We can also help you determine what documentation you need to gather.
In general, the purchase agreement covers the price and terms, including third-party financing, non-compete agreements, and the training and/or consulting period. It will also include the closing date and anything that must still be done before closing, such as financial due diligence, lease assignment, and receiving approval from a franchise.
As your law team, we can help you in many ways, including helping you decide if the business structure will work for you; understand the purchase and sale agreement; draft non-competes; establish the terms of the purchase agreement; understand leases and other documentation; check zoning; incorporate; transfer trademarks and business names; and deal with legislative requirements.