Buying or Selling a Business in The Woodlands

Guidance for Buying & Selling Businesses in Texas

Hopkins Centrich Can Guide You Through the Business Purchase or Sale Process

Business opportunities can pop up anytime and in the most unexpected ways. The chance to merge with another company, perhaps acquire a competitor may come out of nowhere. As could a serious offer from serious people to buy your business. None of these are decisions to be made on the spur of the moment. Impulse buying belongs in the checkout line at the grocery store, not with anything connected to your company.

It’s not just about the details of a merger, a sale, an acquisition – it’s about sound business sense, emotions, diligence, negotiation, preparation, communication, and planning. The Hopkins Centrich team specializes in assisting clients with the acquisition or divestiture of small to medium-sized businesses in Texas. From corporations, limited liability companies, and partnerships to sole proprietorships, we have helped generations of Texas business owners through an acquisition or sale. The transaction may involve the sale of the entire business entity, including its name, or specific business assets.

Regardless of the type of transaction, due diligence is critical. At least 11 distinct steps should be followed before finalizing a business purchase. A thorough examination of the seller's financial records is a vital step, and several examples of records to review include:

Initiating, negotiating, compiling due diligence, structuring, and closing a business deal requires a deep understanding of laws and regulations along with sharp, smart, creative business acumen. It requires lawyers with business experience. It requires Hopkins Centrich.

Key Factors in Business Transactions

Buying, merging, selling. It starts with, of course, your business. The one you have spent years building. Maybe alone, maybe with family, maybe with trusted partners and valued employees. Whatever the history, it’s your company and changing it by buying a company or merging with another is scary, exciting, and stressful all at once. Selling your business or leaving it for another generation is an entirely different type of stress and excitement. What buying, selling, merging has in common is that the execution has to be flawless. Flawless execution requires research, diligence, negotiation, patience, doggedness, a deep understanding of business law, and experience.

The Hopkins Centrich team routinely advises business owners on identifying and addressing the initial key factors that influence the business purchase or sale process. Some of these factors include:

• Deciding whether to sell the entire business or only its assets
• Inclusion of real estate in the transaction
• Franchise-related considerations
• Establishing the type of business entity
• Necessary changes to governing documents
• Contingency clauses
• Protecting confidentiality
• Regulatory or legal concerns
• Sale price and incidental costs

Then we turn our attention to the issues that must be addressed and/or disclosed before a deal can be completed:

• Valuations
• Debts
• Pending litigation
• Employee contracts
• Due diligence
• Licensing
• Compensation
• Management
• Type of entity
• Workers’ compensation claims
• Project liability

That’s just a few of the many things to be discovered, discussed, divulged, negotiated, agreed to.

Due Diligence: A Vital Step

A crucial part of any business transaction is due diligence. Like a house or car purchase, due diligence is an inspection, it’s a deep dive into kicking the tires. The parties must examine the financials, operations, records, and more of a business to accurately assess potential risks. Hopkins Centrich will assist you in obtaining and organizing all the documentation necessary for you to make the most informed decision possible.

Our Houston business law attorneys are experienced in handling various aspects of due diligence, including:

• Reviewing and advising on due diligence documents
• Drafting letters of intent and information requests
• Drafting or reviewing non-disclosure agreements
• Assessing legal and business risks associated with the transaction
• Facilitating diligence processes such as facility inspections, licensing and regulatory checks, tax return audits, and vendor list vetting

To do any of that, the right questions have to be asked. The right documents read and analyzed. Meetings held with accountants, investment advisors, and other lawyers. It takes legal knowledge, experience, and a business perspective to do this smoothly, as stress free as possible, and in the time frame the client wants. Hopkins Centrich has the knowledge, experience, and business acumen to get it done. Moreover, and just as importantly, we are business owners, we get it. We understand the connection you have with your business and all it entails. We understand that even though the new deal is exciting, it’s still hard. We will make it easier.