PHOENIX ATTORNEYS HANDLING BUSINESS PURCHASE FRAUD CASES
The process of buying a business in Arizona involves a substantial amount of due diligence. The seller has a responsibility to provide the buyer with accurate and up to date information about revenue, income, customers, vendors, expenses and debts. The seller should also provide detailed information about the business’s current place in the market so the buyer can accurately assess the value and opportunities for growth. Typically, the more valuable a business is, the more complicated the due diligence process will be. This naturally makes it more likely that certain parts of the company could be misrepresented by the seller or misunderstood by the buyer.
Here are some things to understand about business purchase fraud in Arizona. However, it is essential to find an experienced business litigation attorney like the attorneys at Anthony Law Group in Arizona if you are interested in buying or selling a business or you find yourself involved with claims of business purchase fraud.
Buyer Due Diligence in Business Purchase
The due diligence process for buying and selling a business is complicated by the fact that most business owners aren’t likely to freely offer up their proprietary and financial information to just any potential buyer without first assessing whether the buyer is legitimate and pursuing the purchase in good faith. Plenty of inquiries into the purchase of a business can simply be an attempt to gather information on a competitor or a potential new endeavor.
Whether you are looking to buy a business or you’re considering selling your business, it’s essential to approach the prospect of due diligence with prudence. Both parties should be prepared to sign off on the appropriate confidentiality and non-disclosure agreements and letter of intent to purchase the business. Any buyer looking to access your financial and proprietary information without these agreements is not likely a serious buyer. And any seller willing to offer up this information without these agreements secured first should raise red flags to a buyer.
Working with a law firm that routinely represents clients in the due diligence process for a business is essential to protecting your investment and avoiding business purchase fraud wherever possible. Anthony Law Group has worked with buyers and sellers of business in Arizona for decades and can make sure that the process to assess the value of the company is exhaustive and accurate before proceeding to close.
What if the Seller Misrepresents Details of the Business?
Most business purchase fraud cases involve misrepresentation of some or all necessary details of the business. This can range from small accounting mistakes to blatantly misrepresenting current contracts and the current financial situation of the company. If the seller provided an accounting that made the business appear more profitable or lied about current contracts or vendor relationships, the buyer likely overpaid and might not be able to make the business profitable.
There are many examples of business purchase fraud or seller misrepresentation that fall anywhere between simple mistakes and blatant misrepresentation. Whether that involved implications about their place in the market or the strength of their relationships with partners, vendors and customers, the more subtle examples of misrepresentation typically will require an experienced business litigation attorney to accurately assess and determine if there is legal precedent in Arizona to pursue a case.
If the business purchase has closed and the buyer finds the business was significantly misrepresented, they will likely need to pursue fraud claims against the seller. It is vital to recognize that this process should no longer be handled on your own. Our firm has the necessary experience to properly and aggressively handle any potential misrepresentation claim so that you know your investment is protected to the full extent of the law.
What if a Buyer Makes False Claims of Business Purchase Fraud?
After a business purchase is completed, the buyer might find they are not able to grow or operate the business as they had hoped. That does not necessarily mean their lack of success was a result of seller misrepresentation or fraud, but that does not stop some buyers from claiming there was fraud involved.
The attorneys at Anthony Law Group have represented many sellers against unsubstantiated claims of business purchase fraud. Our firm can assist in establishing the facts regarding business valuation, contracts and the entire due diligence process. Our attorneys can guide sellers through the process of fighting claims of fraud in the sale of the business with our extensive experience in the buying and selling of businesses in Arizona.
Extensive Litigation Experience
In cases involving business purchase fraud, our attorneys at Anthony Law Group in Phoenix, Arizona, do an excellent job of performing an efficient, upfront analysis to determine whether or not the seller’s representations were truthful. We can assess any claims of business purchase fraud in a comprehensive and cost-effective manner to determine whether there is potential liability for either party during the sale of the business.
Founding attorney, Stephen J. Anthony, has more than 25 years of litigation experience, helping numerous clients achieve favorable results via jury trials and arbitration proceedings. The complex process of buying or selling a business in Arizona is one that demands expertise and experience to avoid the pitfalls of potential business purchase fraud.
Contact Us Today — Learn How Our Team Can Assist You
Whether you have been accused of fraud, or you have suffered damages as the result of business purchase fraud in Arizona, our firm of knowledgeable and experienced business litigation attorneys can assist with pursuing justice and protecting your interests.
Please call 602-362-2396 or contact us online. Evening or weekend appointments available by special request. For your convenience, our firm accepts all major credit cards.