You Bought a Business…Now What? 5 Post-Acquisition Steps
- Do an audit of the existing processes and practices.
- Communicate with the existing staff members.
- Study and understand the company culture.
- Plan your changes carefully.
- Be transparent about the changes you’re making.
What is it called when a company changes its name?
By filing a document called “Articles of Amendment,” an LLC or corporation can request to change the name of the business. When approved, it means your company will operate under its new name.
What happens when you buy an existing business?
When you buy a business, you take on a tremendous amount of liability for things that may have happened before you were involved, so don’t leave anything up to chance. 5. Acquire the necessary funding. While there are many benefits to purchasing an existing business, it can certainly be an expensive option.
When do you need to change a business contract?
The simple answer of what changes is “it depends,” and a lot is based on what the original contract stated. Many business contracts include sections dealing with what happens if there is a change in the business. Two contract principles that might affect the need to make a change in the contract are novation and assignment.
What happens to a business when a business changes?
Some business changes are small, like a location change, and some are large, like a bankruptcy or the company goes out of business. For example, maybe a business changes its name or is purchased by another business or goes bankrupt.
What happens to existing contracts when a business is sold?
If the business sale documents don’t specify, you might have to look at the contract itself. As part of the buy/sell process, a new contract may be substituted for a previous contract, with the agreement of both parties. All these factors and options are explicitly explained below.