Shulman Hodges & Bastian LLP

October 2014 Archives

What to do after preparing your business for sale

Recently we discussed the bases you should cover in preparation of selling your business. After taking those important steps, which you can read more about here, you can list the business with a broker or another party who can let potential buyers know that you're selling. Once a potential buyer has expressed serious interest, your attorney can help you start negotiating the terms of the sale.

Steps to take to prepare your business for sale

A good business plan includes an exit strategy. When you're ready to sell your business, a number of crucial steps have to be taken to get the best possible return and protect against future liabilities. Those steps include preparing your business for sale, negotiating the terms of the sale, conducting due diligence, and documenting the sale. Here let's go over some key aspects of preparing for the sale of a business.

Disability-access claims against businesses on the rise

In November 2013, the Eleventh Circuit Court of Appeals found that a person who isn't a patron of a business can sue that business for failure to provide access to people with disabilities. The court's ruling cleared the way for serial "testers" to bring disability-access claims against multiple businesses.

Lawsuit: Orange County Register failed to pay Los Angeles Times

Some Orange County Register subscribers didn't receive a paper for days after the company switched delivery services in early October. According to the owner of the Register's parent company, Freedom Communications, the change came after The Los Angeles Times, which has contracted to deliver the Register since 2009, "refused to guarantee uninterrupted delivery" of the paper.

Protecting against liabilities with comprehensive business planning

In all aspects of life, the decisions we make now will have qualitative and quantitative effects in the short and long terms. The same goes for business. 

Judge: GT Advanced bankruptcy details to remain confidential

Investors and creditors were hoping for more information on the recent Chapter 11 bankruptcy filing by GT Advanced Technologies Inc., which had plans of manufacturing synthetic sapphire for use in Apple Inc.'s new smartphone screens. However, a confidentiality agreement with Apple prevents GT from discussing the details of the supply and financing arrangement between the two companies.

Avid accuses California business of unfair competition

Protecting intellectual property and trade secrets is a key to continued success for many California businesses. Threats of illegal use of intellectual property can come from multiple directions, and business owners should have a legal team that is prepared to handle an intellectual property dispute on numerous fronts.

Change in Reporting Requirements for Companies which may be in Financial Distress

We have recently been advised by our friends at national accounting firm Hein & Associates of a recent change in reporting requirements for companies which may be in financial distress. As you may be aware, CPAs follow standards published by the Financial Accounting Standards Board (FASB). FASB recently issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The new standard requires management to perform annual and interim assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued.

Entity Records to Retain for Due Diligence Review

Whether it is the sale of a business, bringing in a new investor or taking out new financing, your company's records will most likely be reviewed as part of the "due diligence" process. Documents will also be needed to back up representations your company will most likely have to make in connection with loans or other fund raising events. Maintaining good records also demonstrates that you are respecting the entity which is a key defense against a claim to pierce the corporate veil and hold the owners personally responsible for the actions of the company.

Small business owners in California look to stop frivolous lawsuits

If you own a business in California, then you probably have a reasonable expectation that at some point your company will be involved in a legal dispute. With the help of a business law attorney, you may be able to resolve the matter in a cost-efficient way without going to trial.

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Shulman Hodges & Bastian LLP
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