Purchasing a business in North Carolina can be a lucrative and exciting opportunity, but it also comes with a web of legal, financial, and operational risks. One of the most significant, and overlooked, risks is that of successor employer liability. This risk is particularly relevant when the seller has engaged in employee misclassification, treating workers as independent contractors (1099) when the law requires them to be classified as employees (W-2).

Tag along rights are crucial contractual protections designed to safeguard minority shareholders in private companies. These rights ensure that if majority shareholders decide to sell their stake, minority holders can “tag along” and sell their shares on the same terms and conditions.

When businesses change hands, the structure of the acquisition has profound tax consequences for both buyer and seller. From the buyer’s perspective, the choice between an asset purchase and a stock purchase is not merely a technical distinction-it can dramatically affect the after-tax value of the deal.

Valuing a small business is a nuanced process that blends financial analysis with market insight and an understanding of the unique characteristics of each company.

In this case study, we’ll walk through the real-world journey of representing a buyer in the acquisition of a business division.

You may have heard the term micro acquisition thrown around in business circles, especially as more Main Street business owners look for practical, profitable ways to exit or expand.

The DSCR is a measure of the cash flow a business generates relative to its debt payments. In simple terms, it answers the question: "Does this business generate enough income to comfortably pay its debts?"

ddbacks are adjustments made to a business’s earnings—typically EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)—to account for discretionary, non-recurring, or non-operational expenses.