Buying a Business? Make Sure Your Written Agreement Protects You from Future Competition! – By: Tim Odil – Published in the BizWest Thought Leader column in August 2017.

When disputes arise over the purchase of a business, it is often because the agreement did not adequately define what is being acquired by the buyer, what obligations remain with the seller, what representations are part of the basic understanding of the transaction, and what business information is confidential or trade secret.  Often, such agreements also fail to address the risk of departing employees.

Business strategies, customers, status of work, current and projected needs for future work, information about key employees and whether they will remain engaged after the sale is valuable, competition-sensitive information instrumental to the success of the business, and items that that any buyer should consider, define, and protect in the purchase agreement to help avoid future disputes.  Ask every question you can think of as part of the due diligence process.  Understanding what you are buying is crucial to successfully transitioning the company after sale.

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