Types of business transactions
The type of business transactions that corporations engage in typically varies depending on size, nature, and industry. Some of the most common commercial transactions include:
Contract drafting and review
Businesses utilize contracts on a routine basis; and, any business entering into a contract should be incredibly careful. A bad contract or one with different terms and conditions than expected could do more harm than good. Ensure you work with an attorney to review all potential stipulations with a fine-toothed comb.
When entering into a new business, the type of entity that is chosen will have implications over time. While some entities are easier and less costly to form, they may not be ideal to support your long-term business goals. Liability exposure, creditor protection, state and federal taxes, and the potential for investors should all be considered and carefully thought over before making a decision about forming your business entity.
Commercial leases are agreements rarely drafted to be tenant-friendly. In the event a business is considering leasing a building or other office space, having the guidance of a business transactions attorney will help keep the company’s best interests at the forefront of all contractual negotiations.
Mergers and acquisitions
When companies merge, many different moving parts are at play. Businesses build alliances with other companies to benefit financially, to grow in an area of trade, or to enter in a new field of the market, among other reasons. Mergers and acquisitions can also change the overall structure of the combined entity, which doesn’t always go according to plan. All parties involved can have a lot at stake during this transitional period and could benefit greatly from having the assistance of an attorney experienced in mergers and acquisitions.
Asset sales, purchases, and transfers
Businesses should keep potential tax implications in mind when dealing with the sale, purchase, or transfer of company assets. No matter if the assets are tangible – such as equipment, machinery, or inventory – or intangible like intellectual property, asset depreciation and fair market value will come into play. Specific considerations will be required depending upon the type of assets purchased or sold, the overall value of those assets, and if they are transferred to or from a buyer or seller.
While breaking up a business through dissolution may seem like an incredibly adverse situation, it doesn’t necessarily have to be a bad thing. The process of business dissolution can come about in many different ways, either voluntarily through filing a Notice of Dissolution, or involuntarily as the result of government action. Common causes of business dissolution include lack of experience, inadequate capital, poor location, poor inventory management, over-investment, low sales, and more. No matter the reason for the dissolution, an experienced business transaction attorney can help execute the dissolution and transfer of assets effectively and efficiently.
Business Transactions Lawyers in The Woodlands
Business transactions should generally not be undertaken without the guidance of an attorney. At Seiler Mitby, we have over 25 years of experience drafting, reviewing, and negotiating the terms of complex business transactions. If your business could benefit from the insight of an experienced business transactions attorney, contact Seiler Mitby today for more information.