All potential purchasers of small businesses face some of the same issues. For instance, potential purchasers should:
- investigate the company’s finances to see whether the company is performing as well as the owners say it is;
- determine whether you are going to do an asset purchase (purchasing just the assets) or whether you are going to purchase the company (purchasing the stock or membership interests);
- review the assets to determine the worth;
- hire a small business attorney in Denver to write the sales agreement.
However, if you are purchasing a company that is regulated by the PUC, you most likely will have additional steps to take. For instance, you will probably be required to either request a transfer of the PUC license or be required to apply for a new license. Prior to receiving a license, whether a new one or the transfer of one, you will probably have to have things such as insurance or business paperwork in place. Because these processes take both time and navigation of the PUC rules and regulations, it is important to involve a Denver business attorney early in the process so you can start operating soon as the purchase of the business is complete. Failure to do so may mean you have already purchased the business but must wait before you can begin operating it.
If you are looking to purchase a business that has a PUC license, please contact me, your Denver Small Business Lawyer, today to help you through the legal maze of determining the best way to accomplish your goals.