1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Dallas Business Lawyer Discusses Doing Due Diligence Before an Asset Purchase

Dallas business law attorney, Richard “Ric” Armstrong, talks about the importance of doing your due diligence before acquiring the assets of another company.

While purchasing another business’ assets can hold numerous benefits for the growth of your own company, completing the purchase without doing due diligence can result in unexpected headaches at best, and unwanted financial obligations at worst. As with any company purchase, whether asset-based or share based, do the necessary research so you can go into the deal well-informed. Cover your bases by obtaining the following information:

• A schedule of all assets and their locations, provided by the target company.
• The appraised value of the assets. Do these figures differ significantly from the declarations of the target company?
• Does the company own the assets outright? Is there any lingering debt associated with the assets?
• The condition of physical assets (e.g., equipment), along with maintenance records. Are the assets in need of repair? What is their life expectancy? What is their depreciation rate?
• Copies of all deeds and titles of ownership, along with surveys of real estate.
• If purchasing intellectual property (e.g., copyrights, patents, trademarks, logos, etc.), obtain an itemized schedule with proof of ownership.
• A list of current contracts, licenses and permits.

The list above should only serve as a starting point for due diligence before purchasing the assets of another company. An experienced Dallas business law attorney can help you do a full evaluation of the target company’s assets to make sure there are no unexpected surprises. Call Armstrong The Law Firm, P.C., today at 972-424-L-A-W-S (5297).

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297