Buying or selling a business is always a big decision. Not only is there the potential for lots of money to change hands, it represents a new direction in your own career path. Because so much is at stake, it means you want to be as thorough as possible.
Making a mistake on a sale or purchase could result in regret down the line, with opportunities to address these problems having long passed you by. Here are a few things to keep in mind if you’re thinking about buying or selling a business.
You can’t fight city hall, they say. Some Texans may be surprised that this saying has its roots in British common law from well before the USA existed. The idea is “sovereign immunity” and is simply that governments are immune from lawsuits brought against them using their own laws.
Texas, like the federal and other state governments, also enjoys this immunity. But like those other governments, Texas has chosen to declare itself partly suable by waived its immunity under certain circumstances.
When it comes to construction projects, there are plenty of parties involved. There is the property owner, the general contractor, sub-contractors and sometimes an architect or designer. During a project, all these parties need to communicate with one another to get the job done.
Sometimes, things don’t go as planned.
Disputes between the various parties involved in a construction project are not uncommon. What is unacceptable about disputes is the time and money they cost. That’s why mediation is often the go-to route to resolve disputes.
Mediation not only allows for a quicker and often less expensive resolution than going to court, it can also help maintain the relationships between businesses that will eventually work together on another project.
If you’ve entered into a partnership, you expect it to give your company an edge. An ideal partnership allows both sides to contribute unique strengths and make each other stronger.
Unfortunately, many partnerships are less than ideal. Here are a few signs your partnership may not be the optimal arrangement for your business:
Macquarie Group, which is Australia’s biggest investment bank, has filed a lawsuit against Jupiter Market & Trading. According to Reuters, Macquarie has accused Jupiter of breach of contract related to oil purchases and storage.
If you are starting your own business, you will have to consider what tax entity your company will operate under. This important decision will establish the structure of your business, as well as the personal risk you are prepared to accept and the investment opportunities your business may provide. Because this decision can affect so many aspects of your business, it is important to be well-educated on your options before making making up your mind.
Sole proprietorships
The Austin City Council agreed to lease a location from MetCenter for 10 years at a cost of $31 million to house the new Municipal Court. That was in May. Now MetCenter is suing the city for pulling out of the deal. The agreement was tentative, but MetCenter alleges bad faith negotiations and double-dealing.
When you’re starting a business, one of the main expenses is a commercial space.
If you don’t want to commit to purchasing commercial property, then leasing is your best option. What some business owners don’t realize is what’s not in the lease is just as important as what is.
As a small business owner, you understand that things don’t always go as planned. A major part of the job is resolving arguments and smoothing over tensions on a daily basis. Whether it be an employee disputing the amount of overtime they worked or a shareholder angry that their expectations are not being met, there will always be a fire to put out when you’re the boss.
As we discussed in our blog last month, one of the most effective ways to avoid business disputes is to carefully construct your business in a way that quells them to begin with. Make sure everything is in writing, make expectations clear, always have information available and so on.
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