There are various advantages to buying an existing company in Florida. If a business is already established in a strong physical location and has a devoted customer base, the new owner may be able to take advantage of this. Buying a business, however, necessitates meticulous attention to detail in order to avoid the various risks that come with such a transaction.

Due diligence is essential for ensuring that the business you’re interested in buying is financially sound. Due diligence is normally performed prior to signing definitive agreements governing a deal, however some diligence may be performed after signing but prior to closing. A M&A Attorney in Miami, as well as a finance team and operational workers, will review the process. Other experts, such as environmental specialists, may be called to participate as well.

Legal due diligence (as opposed to operational and financial due diligence) may entail your attorneys reviewing target company organizational documents, board actions, permits and governmental filings, material contracts, real property instruments, lien searches, insurance policies, governmental and third-party communications, patents, trademark registrations, licenses and other intellectual property, credit agreements and other financing documentation.

Buyers may also conduct facility and asset inspections, as well as talks with key people. The structure of the transaction and the conditions of the acquisition agreement may be influenced by information discovered during the due diligence process. It is the first, and possibly most significant, method of ensuring that you are purchasing what you think to be purchasing.

If you or your business needs legal advice, contact a corporate law firm in Miami for help.