What to consider when purchasing a business
Question: I recently retired and moved to Cape Coral. I am considering purchasing a restaurant that has recently opened and appears to be very successful. Should I?
Answer: Cape Coral is home to thousands of small businesses. So, it is no surprise that there are many transactions every year where the founder of a business sells to a new owner. There are so many small business success stories in Cape Coral, but there are also many that do not survive. Before entering any business purchase, be informed and be prepared.
First, you will need to determine what the sale of the business includes. Is it an entire corporation or limited liability company (LLC)? Or, is it simply a purchase of the assets in the restaurant. Those assets can include tangible property like ovens, tables and cash registers, and intangibles like the phone number, website and, of course, the trade name of the business.
Equally important is how the building where the restaurant is located will be conveyed. Is the building being sold as part of the business, or was the restaurant building being leased to the current owner? If the latter, contingencies will need to be included to ensure the lease can be transferred to you, at an acceptable lease payment.
Other issues will need to be considered, including whether there are any liens on the building, assets or accounts receivable. The purchase of a business is major decision that can be very complicated. Engaging professional advisors early in the process may help protect you from problems you had not considered. I believe Cape Coral is an outstanding place to open a business. I wish you much success if you proceed.
– Eric P. Feichthaler has lived in Cape Coral for 27 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 13 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.