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What to do when you receive a demand letter

What to do when you receive a demand letter

You received a Demand Letter and Now What? Sometimes, deals do not work out as planned. If you are a Texas business, you may be on the receiving end of an allegation that you have breached a contract. These days, we see allegations first come up in text message exchanges or emails and only when those issues are not resolved do we see an attorney write a demand letter or contact the alleged breaching party. Regardless of whether you hire an attorney, there are a few things to know and do when you receive a demand letter. Examples of a breach of contract For an example, let's think of the construction industry, such as in a buildout of a bar or restaurant. The new business owner acquires a commercial lease,…
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Thinking of Buying Commercial Property? 3 Things to Know

Thinking of Buying Commercial Property? 3 Things to Know

While many businesses today have to utilize the online world in order to succeed, there is still nothing that can replace a physical space. Whether you are opening a restaurant or looking for a warehouse for your retail goods, commercial real estate may be an important part of your company’s development. However, buying or leasing property for your business can be a risky process, especially for those brand-new to the marketplace. With large sums of money on the line, and lots of fine print in the contracts, it’s all too easy to take a gamble with commercial real estate and lose. If you are hoping to start a new business, or expand your current one, the right facilities are essential. Here are a few things that you should keep in…
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Why Every Restaurant Should Have an Attorney

Why Every Restaurant Should Have an Attorney

The hospitality and food industry is one that is consumer-centered, and thus, caters to the needs of all kinds of people. Because of this high volume of public interaction, restaurants need to be extra careful to have all of their ducks in a row, in order to keep their doors open. Unfortunately, we live in a litigious society, and small businesses are having to work harder to minimize liabilities and handle consumer issues without derailing their entire enterprise. However, there is still the myth among entrepreneurs and restauraneurs that you don't necessarily need a Texas business attorney after your doors are open. Sure, many new restaurants utilize lawyers to get their filings in place, to acquire licensing, and to build the structure of their company. But once they’re open for…
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Top 3 Reasons to Hire a Business Attorney for Your Start-Up

Top 3 Reasons to Hire a Business Attorney for Your Start-Up

Starting your own business is one of the most exciting and complicated ventures you may ever take in your lifetime. From the initial concept to opening your doors, you will have many decisions to make and legal documents to sign. Many entrepreneurs find that partnering with a business attorney when starting their company is extremely beneficial. There are several areas where a business attorney can help your start-up including: Creating contracts and partnership agreements: Starting a business requires many different documents that need to be signed and filed properly. Two of the most important kinds of documents you will encounter are contracts and partnership agreements. Contracts can be with new employees, vendors, or independent contractors, while partnership agreements are for businesses which have co-owners. An attorney can help you create…
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Steps for a Business Sale or Acquisition

Steps for a Business Sale or Acquisition

The issues addressed at the start of any Texas business sale usually progress in the following order, as an overview. As always, if you would like to know more about business law questions such as the legal issues involved in buying or selling a business, send me an email from my Contact Us page or call me 713-300-1946. LETTER OF INTENT As you know from my prior posts, after the initial discussions between the buyer and seller, the terms start to come together and it should be put into writing so everyone is on the same page. This is important so its understood that some terms are agreed, while others are still up for negotiation. There is a significant amount of time and energy that go into a business purchase.…
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Basic Things to Know When Buying or Selling a Business

Basic Things to Know When Buying or Selling a Business

I am often asked to explain what certain terms mean or to explain the process of buying or selling a Texas business. Usually I will find myself stating a term, and then realizing that the document title is also unknown to the client. I have developed a roadmap I use with my clients so they can follow the process. I provide this with our engagement agreement and it serves to clarify the process and work we will be doing to complete the transaction. If you are buying or selling a business and want to discuss the process in more detail, email Tim from the Contact Us page or call the office today. The definitive purchase agreement is the final agreement for buying or selling a business. If the buyer and…
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Business Lease Issues When Starting or Selling

Business Lease Issues When Starting or Selling

A lot of times I have a new client come to me excited to have made the decision to start a business or to sell the business they have built over the years. It is an exciting time to start or its finally time to exit. Perhaps the client has a copy of a proposed lease or even has a buyer in mind. Regardless of whether you are starting your new business or selling your business, your lease is a crucial document that can and should make or break a deal. Typically, the new tenant just signs but I would recommend you at the very least have an attorney look for any problematic terms. If you need your lease reviewed, Tim Sutherland reviews and negotiates commercial leases for retailers, service…
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Ten Traps to Avoid When Buying a Business

Ten Traps to Avoid When Buying a Business

If you are in the early stages of the process of buying a business, there are a few typical issues that always come up in negotiations. I have written previously about the use of a Letter of Intent, which will get the basics in place for the final actual purchase and sale documents. The Letter of Intent (or LOI) is a short document that spells out the important terms and conditions of the sale such as the price, how and when the price will be paid, the assets that will be sold to the buyer (and those the seller will keep), and other terms such as the seller’s noncompete agreement. The LOI allows that parties to put in place a signed document for the basics of the deal so the process…
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Steps to Buying a Business

Steps to Buying a Business

If you’re starting out on the path towards purchasing an existing business, the steps are relatively simple when put in general terms. Below are a few guidelines for the stages. RESEARCH This should be the stage when you dig into the company. It is likely you will have to sign a non-disclosure or confidentiality agreement prior to receiving most of the materials as they are private. Look beneath the surface of any broker representations or if you found the business online and read a glowing description of its potential, its time to look for yourself. You need to investigate. We already know you need to verify the financials. You also need to look into the employment issues such as making sure wages and taxes are in order, as well as…
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Letter of Intent – The First Step to Buying a Texas Business

Letter of Intent – The First Step to Buying a Texas Business

The letter of intent outlines the purchase of a business. The letter provides a summary of the terms and guides the deal after the letter is signed. If you are considering purchasing a business in Texas, contact Tim Sutherland so the firm can guide you through the steps from start to finish. We can protect your interests and make sure the deal is done right. You need an attorney to review a proposed letter of interest from the seller or broker as these are often one sided and not favorable to the buyer. You probably don’t know what to look for and in fact each deal is unique due to the nature of the specific business and the seller and buyer. If you are the buyer and drafting the letter…
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