Stock or Membership Interest Purchase Agreements

Agreements to buy or sell businesses can be structured as asset sales or interest purchases. Whereas an interest purchase makes it easier for a purchaser to transition the business to their control, it also exposes the purchaser to answer for undisclosed financial liabilities caused by the seller.

Having experienced legal counsel that knows and understand that small nuances of interest purchase will determine whether you will experience buyer’s or seller’s remorse a year after closing. For example, Buyer’s represented by an experienced attorney will ensure that the escrow agent “holds back” a percentage of the sales price or requires the seller to “earn out” the purchase price. On the other hand, a seller of stock or membership interest represented by savvy counsel will ensure that the contract language requires actual knowledge of liabilities.

Entrepreneurs and small business owners in Houston have turned to the lawyers at VLF to advise them on buying and selling their businesses for over a decade. You should too.