Welcome back to the Raich Law PLLC blog! Last week we shared some information on the initial talks and negotiations that should take place when selling or buying a business in Nevada in part one of Tips for Buying or Selling a Business in Nevada. Today we’re going to share some information on contracts for selling or buying a business in Nevada. Be sure to check back next week for the third and final part.
Selling or Buying a Business in Nevada Contracts
The most important aspect of selling or buying a business in Nevada is the documentation – the contracts and agreements – of the transaction itself. Such contracts and agreements provide for the terms that the parties have actually agreed to after any negotiations. While most business people realize that contracts need to provide for the agreed upon terms, many fail to realize that the contracts have to also state any potential terms that the parties might have failed to discuss.
For example, what happens if either party wants to back out of the transaction prior to closing? What happens if one party finds out, after the closing of the transaction, that the other party did not disclose all the relevant liabilities of the business? What happens if the parties have a disagreement prior to or during closing? How can a party protect itself against potential third party claims on the business? Comprehensive and detailed contracts, such as those that Raich Law PLLC have drafted and continue to draft for our clients, provide for answers to all these questions and many more.
Due to the fact that most attorneys, mediators/arbitrators, and judges look to the written documentation agreed upon to by the parties when making a determination as to the transaction, it is imperative that the document provide for terms that might assist such a decision maker.
Finally, and perhaps most importantly, effective contracts allow both parties to have peace of mind – while it is obvious, many ineffective contracts can lead a party to worry or stress about potential defaults or breaches.
It’s the job of the attorneys at Raich Law PLLC in Las Vegas to worry about the deal and the contracts so you don’t have to. For a free consultation, fill out our contact form or call us at (702) 758-4240 and speak to a Nevada Licensed Attorney today!