How to ensure business has no existing liens?

by a searcher from University of Pennsylvania - The Wharton School

3 months ago

I'm considering buying a business with a mix of personal funds and seller financing. The purchase will be an equity purchase (to prevent having to resign the outstanding non-transferable contracts associated with the business). Any recommendations on 1/ how to identify the existing liens on the business and 2/ ensure that there are no existing liens at the time of closing (e.g. is there something similar to title insurance that one gets when buying a house but for a business?).

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professional from Villanova University - Villanova School of Business

^Searchfunder member‌ That’s a part of the legal due diligence, deal term structuring and negotiation process your legal team provides. There’s representation and warranty insurance if the deal is big enough to warrant it. There’s no guarantee, but there’s plenty that can be done to reduce the risk. I also have a great podcast episode on this on Dealmaking with Laura DiFrancesco. I’d be happy to discuss this further or provide legal assistance if needed.

3 months ago | like reply | 0 likes

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

^Searchfunder member‌ might be able to help here.

3 months ago | like reply | 0 likes

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