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Samuel II
Samuel II, Attorney at Law
Category: Business Law
Satisfied Customers: 27011
Experience:  20 years of experience practicing law with diversified background.
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My husband and I are buying a coffee shop, we submit an

Customer Question

My husband and I are buying a coffee shop, we submit an offer to the owner and he suppose to get back to us today or later tomorrow.
I would like to know what is next step should be, do we need to hire a lawyer and CPA to study the financial statement.
And how mush it usually costs, I know it depend from state to state but I would like to get an estimate.( is it like couple hundreds or couple thousands)
Submitted: 1 year ago.
Category: Business Law
Expert:  Samuel II replied 1 year ago.


This is Samuel and I will discuss this and provide you information in this regard.

Yes, I suggest you will want to begin to form an "acquisition team" which would include your banker, accountant and attorney-to help you. These advisers are essential to what is called "due diligence" in looking at the financials such as obtaining the last 5 years of income tax returns of the business, are there any outstanding liens on the business, how much they have profited in the past 5 years, etc. I suggest you will want to talk to customers to get their opinion on the business, get the names of suppliers and vendors and make sure there are no outstanding invoices, as once you make the purchase you would be liable without these issues being addressed in any contract. And you might then be able to negotiate a price based on what those outstanding invoices are. And you do not want to be responsible for any liens against the business. This is where a local attorney will be very helpful.

The cost is going to depend on what your attorney and accountant will charge you to do this review. It is possible you could get them to do it on a flat rate v. an hourly rate.

Please let me know here if you have other questions or need clarification. Otherwise a Positive rating ensures i get credit for my time.