If you're going to buy or sell a business in Georgia, it really is critical to know exactly what you are buying or selling. While that sounds simple and obvious, it's often an issue that some buyers and sellers don't consider.
For example, a typical introductory phone call to me from a prospective buyer or seller of a business here in Gwinnett County starts with the caller explaining that they want a lawyer to help them buy or sale a business. One of my initial questions seeks to ask what it is that they plan to buy or sell, and the answer is typically, “the business.” I then have to push to go a little deeper and begin to discuss whether they are really just going to buy or sell the principal assets of the business, such that they are doing an asset only transaction, or if they are actually buying or selling an existing company, such that they are buying or selling a corporation or an LLC. The difference is important both with respect to what assets (and liabilities!) get bought and sold, and also with respect to what type of contract is used and how the transaction ultimately plays out.
In this short video, attorney Joel Beck provides an overview of the differences between an assets only transaction and a stock (or LLC membership interest) transaction.
The Beck Law Firm, LLC in Lawrenceville, Georgia (Gwinnett County) provides a variety of business law services to business owners, or owners to be. If you're planning to buy or sell a business here in Georgia and need experienced legal counsel to help, we invite you to contact us to discuss your situation and see how we might be able to be of service to you.