Buying and selling a small business

• Author: Steven F. Samilow
• Pages: 709-758

BUYING AND SELLING

A SMALL BUSINESS

10-1

CHAPTER 10

BUYING AND SELLING

A SMALL BUSINESS

I. INITIAL CONSIDERATIONS

§10:01 General Points

§10:02 Conf‌lict Check and the Attorney’s Role

§10:03 Client Interview

§10:04 Buyer’s Objectives and Concerns

§10:05 Seller’s Objectives and Concerns

§10:06 Checklist for Buying and Selling a Business

II. STEPS IN THE TRANSACTION

A. Preliminary Matters

§10:20 Buyer’s Investigation of the Business

§10:21 Letter of Intent

§10:22 Seller’s Income Tax Consequences

§10:23 Engage a Tax Professional

§10:24 Environmental Reports

§10:25 Purchase Offer

B. The Documents

§10:30 Drafting the Contract for Sale

§10:31 Earnest Money Deposit

§10:32 Book Value Def‌inition

§10:33 Seller’s Warranties

§10:34 Successor Liability

§10:35 Protecting the Buyer Against Successor Liability

§10:36 Non-Competition Covenant

§10:37 Arbitration

§10:38 Additional Documents

C. Completing the Transaction

§10:50 Other Sale Requirements

§10:51 Brokers’ Commissions

§10:52 Closing

III. ISSUES REGARDING PARTICULAR ASSETS

§10:60 Real Property

§10:61 Mineral and Water Rights

§10:62 Depreciable Assets

§10:63 Liquor Licenses

BUYING AND SELLING

A SMALL BUSINESS

Florida Small-Firm Practice Tools 10-2

§10:64 Goodwill

§10:65 Shares of Stock

IV. SALES AND REEMPLOYMENT TAX REGISTRATION

§10:70 Sales Tax Registration

§10:71 Reemployment Tax Registration

V. SALES OF DIFFERENT TYPES OF BUSINESSES

A. Sole Proprietorships

§10:80 Sale Is of Individual Assets

B. Partnerships

§10:90 Choice of Methods

§10:91 Partnership Dissolution

C. Professional Practices

§10:100 Special Considerations

§10:101 Agreement Not to Compete

D. Corporations

§10:110 Methods to Accomplish Sale

§10:111 Closely Held Corporations

FORMS

Form 10:10 Client Intake—Buying and Selling a Business

Form 10:20 Letter of Intent

Form 10:30 Conf‌identiality Agreement

Form 10:40 Access & Indemnity Agreement

Form 10:50 Asset Purchase Agreement

Form 10:60 Sale of a Sole Proprietorship Contract

Form 10:70 Sale/Dissolution of a Partnership Contract

Form 10:80 Sale of Professional Practice Contract

Form 10:90 Contract for Sale of a Business/Corporation

Form 10:100 Checklist for Buying and Selling a Business

Form 10:110 Seller Aff‌idavit

Form 10:120 Minutes

Form 10:130 Bill of Sale

Form 10:140 Security Agreement

Form 10:150 Non-Compete Agreement

Form 10:160 Lease Assignment

Form 10:170 Personal Guarantee of Lease

BUYING AND SELLING

A SMALL BUSINESS

10-3 Buying and Selling a Small Business §10:04

I. INITIAL CONSIDERATIONS

§10:01 General Points

Λεγαλ ασσιστανχε ωιτη τηε πυρχηασε ορ σαλε οφ α χλοσελψ ηελδ ορ σµαλλ βυσινεσσ ισ α χοµµον χλιεντ νεεδ. Φορ

    

σουρχε οφ χοντινυινγ βυσινεσσ ανδ ρεφερραλσ.

§10:02 Conf‌lict Check and the Attorney’s Role



[Φλα. Ρ. Προφ. Χονδ. 4−1.7.]



 

[Σεε





νειτηερ παρτψ ανδ ονλψ αχτ ασ τηε χλοσινγ αγεντ.

PRACTICE TIP:

If you represent one party to the transaction and the other party is not using an attorney, suggest in writ-

ing that the non-represented party hire independent counsel. This will preclude a later claim that you were

impliedly representing both parties or that the unrepresented party was taken advantage of as the result of

the absence of independent representation.

§10:03 Client Interview

    



ι.ε.

 

δοχυµεντατιον νεεδεδ ωιλλ δεπενδ το σοµε εξτεντ υπον ωηετηερ ψου αρε ρεπρεσεντινγ τηε βυψερ ορ τηε σελλερ.

PRACTICE TIP:

Consult specialists in the specif‌ic areas involved in the buying and selling of a business. Most criti-

cally, have your client engage a certif‌ied public accountant to assist with tax consequences and to review

the books and records of the business. Additionally, the services of a business valuation expert may be

required to assist in valuing the business. [See, e.g., Lally Orange Buick Pontiac GMC, Inc. v. Sandhu,

264 So.3d 412, 413 (Fla. 5th DCA 2019) (noting use of valuation experts in court proceeding concerning

business valuation).]

ΦΟΡΜ: Σεε τηε φολλοωινγ ατ τηε ενδ οφ τηισ χηαπτερ:

 

§10:04 Buyer’s Objectives and Concerns

   









     

