Legal Question in Business Law in New Jersey

Looking to buy a business:

Seller will not hold note. I have partial downpayment available. SBA/Lenders would not help.

I suggested the seller max out the business credit line and after buying the business I would assume the debt. This would force me to buy the business as a stock transaction, but I prefer to buy as an asset sale. I do not want tax or other liability after purchase. Is there any way to structure this?

Thanks


Asked on 3/27/10, 4:44 pm

1 Answer from Attorneys
Robert Davies The Davies Law Firm, P.A.

You are asking a question that no decent attorney is going to be able to answer with just the information you have given.

I can tell you that you are considering a very very riskly method of buying the business. Maxing out the business credit line will put a much larger financial burden on the business than a normal purchase arrangement.

You really need an attorney to assist, and probably an accountant.

Please think carefully before doing what you propose.

Call me if you like, I will be happy to assist you.

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Answered on 4/02/10, 7:04 am


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