347-990-3227 347-990-3227

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.