A closely held business, especially a family business, needs a succession plan. A succession plan should be part of an overall business plan, just like profit and loss projections, product and marketing plans. Questions such as: Who will take over when the owner retires? Will the business be sold? To a co-owner? To an outsider? Who are the possible buyers? When will the business be sold? All of these questions need to be addressed.
Day: January 2, 2020
Partition suits are filed when multiple owners of real estate cannot agree as to the sale or division of the property. Partition suits are frequently used as a method of settling the division of real estate among beneficiaries of an estate who cannot agree.
Yes, you should always have your attorney review a contract to purchase a business or real estate or a lease before you sign the document. Most legal problems that come to me are the result of a poorly drafted or one-sided document. Legitimacy is only one concern; just because “an attorney” drafted a document does not mean that it serves your interests, unless the drafting attorney was your attorney. Your attorney will look out for your interests.
In today’s world, most purchases and sales of businesses are of business assets, not stock, and it becomes imperative to know exactly what the business assets are. It is also important to know if the assets have been pledged as collateral for a loan, and whether they are owned by the business or leased by the business. Three recent problems come to mind with respect to the value of the business assets.
Is someone you know involved in a family dispute after a parent has died? Over a Will? Family land? A family business? In legal terms, these are probate disputes. The usual trigger for a probate dispute is an unmet expectation of one or more of the beneficiaries.
If you plan to purchase real estate in Virginia, you should do your due diligence before you close on the property and you should hire a real estate attorney. Absent outright fraud, sellers are not required to disclose, for example, an ongoing disagreement with a neighbor over the use or location of an easement, or a disagreement over a fence on the neighbor’s property. Nor are the sellers required to volunteer that the field next to the property was just sold to a developer…