Business is money and business is strategy. Like it or not, these are inescapable truths.
This article is not meant to provide legal advice or to form an attorney-client relationship; it is meant only to provide general information about the important topic of maintaining electronic data that is impacting on all businesses operating in Florida.
At some point you have been involved in business. Either you worked in one, owned it, or know someone who did. Did you work for free? Probably not. Did you direct others to act, wonder why you were doing some of the things you were asked to do, or think about what could improve the business. Of course you did. Even if it was something simple like complaining about the lack of a vending machine in the workplace, believe it or not, you were addressing workplace moral and strategizing methods to improve it.
So, what do you need to do to protect your investment when starting, buying, or selling a business in Florida? Besides a well-prepared infrastructure prepared by a competent business attorney that you trust, you need to consult with two different kinds of people in the financial sector.
When you start or buy a business, within your legal infrastructure you should have a mechanism that will buy you out should some tragedy befall you. Whether it is contained within agreements you must have, such as a Shareholder or Operating Agreements, or is a stand along document, such as a “buy-sell” agreement, you can provide for the funding for the purchase of your interest and that of others through financing vehicles that are generally available. It depends on your circumstances and objectives, but it is not hard to envision a situation where you are a partner in a business and crippled or killed in an accident. In that situation, it would benefit you, your loved ones, and the business if you interest was valued at the amount of something like an insurance policy, for example. This is a very simplified example, but you get the idea. The financial professionals you want to speak with at this stage of the life of the business are those that have knowledge of and access to products that can achieve these goals.
Conversely, when you sell a business, you want a different kind of financial industry professional who can aid you in understanding what to do with the proceeds from the sale. A competent business attorney can craft the documents necessary for the sale, advise you on some of the potential issues than can arise from the transaction, and even reduce the likelihood of post-sale disputes with properly drafted documents, but such person can’t usually advise you on what to do with the money. For that you want to consult with financial professionals that invest money, advise on investing independent of the actual investing, and are capable of running scenarios and comparing different options. The information provided by these professionals can help shape the terms of the transaction and may even reduce the chances of post-sale defaults through the analysis.
In sum, whether you are starting, buying, selling a business in Florida or know someone who is, be sure to discuss with your business attorney the options available with regard to qualified financial consultants for those situations. The Law Office of David Steinfeld, like many attorneys that specialize in business litigation, have established relationships with such financial professionals in order to guide clients and give them options of these professionals from which to choose. In starting, buying, selling a business in Florida, the financial planning is equally as important as the legal planning and should not be overlooked.
For more information please visit http://www.davidsteinfeld.com