Business Law – What Should I Know About Closing On A Business And What To Avoid?
- When buying a small business, one of the most important things is inventory, which is not a fluid thing, and therefore is not included in the purchase price or selling price.
- On the morning of the closing, the buyer and seller usually meet to take inventory of all stock that is in the particular business.
- Usually a buyer will pay the seller, dollar for dollar what the inventory is as the buyer will now be able to sell that inventory.
- Another pitfall clients often face is licensing. Getting a liquor license for an off-premises sale of liquor, the sale of beer and wine is not so easy in New York City.
- They want to see clean applicants, so the contract has to state clearly that if an off-premises liquor license for beer and wine is not obtained, then the buyer does not have to close on this.
- It sometimes takes a two or three-month process for the liquor license to be issued.
This short informational legal video was provided by Arnold Drucker, an experienced Jackson Heights Business Lawyer.