The allure of acquiring a business can cause a purchaser to fail to exercise sound business judgement. Sometimes, the best deal is the one that does not happen. There are warning signs that can alert you to this. A few of these signs are listed below:
- An owner who has devoted less time to the business in recent years;
- Owners who are unyielding in their purchase price demand and not willing to engage in productive negotiations;
- Relatively large recent employee turnover;
- The departure of one or more major customers; and
- The failure to adhere to corporate formalities (allowing licenses or corporate registrations to lapse).
These are but a few of the red alerts that should cause you to pause. If you pay attention to them, you may avoid a large mistake and have a happy Thanksgiving instead of a disappointing “Tanks”giving.
ABOUT GLENN D. SOLOMON
Glenn D. Solomon Esq., is a principal at the law firm of Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years, with extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With 120 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eight offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
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