Depending upon the terms of the asset purchase agreement or stock purchase agreement, a business owner may have considerable exposure and liability when selling their business. Most purchase agreements contain broad and detailed representations and warranties that the business owner or owners may be liable for damages if the seller deems there to be a breach of any or multiple representations and warranties. A business owner selling their business may be able to significantly limit their overall exposure and potential liability by working in certain clauses and language within an asset purchase agreement or stock purchase agreement.
If you are selling your business in Colorado consider speaking with a business attorney at The McGuire Law Firm. Schedule a free consultation.