People buy and sell small businesses every day. Those business sales/purchases are typically structured in one of two ways, and that sale structure dramatically affects the business buyer’s opportunities and liabilities in the future.
Traditionally, each business was sold altogether as a single unit. This structure for the sale of a business is typically called the “sale of the entity.” If a business is analogized to be a box full of assets that together creates money, the sale of the entity is the sale of the box and all of the box’s contents.
The sale of the entity is a classic example of a business purchase/sale envisioned by most novices to business. The buyer acquires the business entity, all assets and liabilities of the business, all of the business’s contracts, contacts, accounts receivable and accounts payable. A sale of the entity is most frequently the structure for transfers of businesses within a family or to or from people who previously had some (even if small) shared ownership in in the business to begin with.
Read more at:
Legal-Ease: Structuring a small-business purchase:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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