When Issues Arise Prior to a Transaction’s Completion
Most transactions do not proceed without some surprise coming up that must be addressed prior to the parties being willing to complete. How you deal with the surprises depends on your ability or willingness to enforce the representations in the buy/sell agreement, or your ability to fix the problem that arises. Litigation should not be lightly considered, but it may be the result if the seller misrepresented the status of the business but demands a buyer close. Other issues may be less litigious, but could make it impossible for a party to meet its requirements under the buy/sell agreement. For example, a seller may have expected a third party, such as a landlord or franchisor, to rubber stamp the transfer of the lease or franchise agreement to the buyer, but when this does not happen the parties must work together to determine if the third party can be persuaded to consent to the required assignment. If not, the transaction could die, leaving both parties disappointed and frustrated.
Having us on your side throughout your business transaction would ensure that you limit the potential for issues such as these arising, and if they do arise, we work hard to find you a satisfactory solution to the issues. These issues are normally not deal breakers and hard work on our part normally results in an acceptable resolution for clients.
Contact us if you are looking for legal advice in Kelowna.