Monday, April 13, 2009

Small Corporations - Do Not Try This At Home!

Scenario: A closely-held corporation has an offer to be bought.

Problem: The buyer wants to keep the existing company name.

While there are several options, the problems created by not doing this right have the potential for being huge and hugely expensive. At a minimum, the choices are bulk sales or have stock issued to the buyer. The choice depends on the facts of who is the buyer and what interest the current owners want to keep and tax consequences and the corporate by-laws. I call this the procedural side of a sale.

I call the other side the substantive side. This includes things like non-compete agreements and trade secrets and non-disclosure agreements.

Bottom line: this is not something to do on your own, get a lawyer.

Remember, if you want more information about retaining me for a case, please give me a call at 765-641-7906.