Buying a business? Due diligence is critical

Buying a new business can be extremely risky.

That’s why, before you sign on the dotted line, you should conduct an in-depth due diligence review.

Whether you’re going to arrange for an asset purchase or an ownership interest purchase, a careful due diligence review can help you avoid exposure to liabilities, known and unknown.

Want to avoid after-the-purchase nightmares?

Read my new article titled Tax Tips: Buying a Business: Due Diligence Is Critical!

Three ways our fact-filled article can help you:

1. We’ll explain why an asset-purchase buyer should understand the “bulk sales” law. Article 6 of the Uniform Commercial Code (UCC) protects creditors when assets of a business are transferred to a new owner. It requires sellers to give creditors notice of asset sales. If the bulk sales law is not complied with, creditors can “follow the assets” and go after you. If you want to stay out of trouble, take my advice and read the full article.
2. You’ll learn why it’s important to conduct a UCC filing search. A UCC search will uncover security interests that have been granted with respect to any assets that you’re buying (for example, leases or loans secured by equipment). Protect yourself before problems arise! Read the full article.
3. We’ll tell you how to handle the purchase of an ownership interest. If you’re going this route, it pays to be paranoid. You see, if you’re not careful, it’s easy for liabilities to pop up that become terrible problems. We’ll show you how to stay out of (very) hot water when you read the full article.