Happy New Year and welcome to the Raich Law PLLC blog! Today, we’re going to share part one of Tips for Buying or Selling a Business in Nevada. Be sure to check back next week for part two.
When buying or selling a business in Nevada, most businessmen and businesswomen know what to look for and discuss – it is common to review a business’ financials, inspect the business’ assets, review the lease terms of the business location, etc. But there are many important considerations when buying or selling a business that either party may not discuss or disclose until it is too late. Many transactions unfortunately turn hostile or even devolve into litigation due to oversight of one of the parties. What are some of these issues and how can they best be dealt with?
Initial Talks and Negotiations When Buying or Selling a Business in Nevada
Those in business often discuss issues about their business and or thoughts of buying or selling a business in Nevada over lunches, while at friends’ houses, or a myriad of other casual settings. Most of the time, such conversations are just general friendly talks without any objectives; however, there are times when such talks turn into potential business offers and at that time, many parties keep discussions going without any contractual agreements or terms.
Many believe documents like a Letter of Intent (LOI) and a Non-Disclosure Agreement (NDA) are just pieces of paper that don’t mean much and often that’s true. When parties deal in good faith and close transactions with proper contracts, they don’t need to rely on any LOIs or NDAs to enforce their rights. But what happens when a deal goes awry? What happens when one party learns everything about another party, decides not to engage in business with that other party, and later competes with the other party using the information it learned in those initial talks and conversations? LOIs and NDAs are necessary for business transactions to protect both sides prior to the divulgence of any sensitive or competitively advantageous information. LOIs and NDAs are like insurance – better to have them and not need them than need them and not have them.
The attorneys at Raich Law PLLC in Las Vegas have protected many clients with strong and comprehensive LOIs and NDAs and we can protect you and your business as well. For a free consultation, fill out our contact form or call us at (702) 758-4240 and speak to a Nevada Licensed Attorney today!