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If your company is the target of a merger or acquisition, you are undoubtedly facing a process called due diligence. Due diligence is essentially a thorough investigation into the state of the target company so that the buyer can be aware of all potential liabilities and other issues prior to the completion of the transaction. Due diligence is necessary for several reasons, including that your company is accurately valuated, that there are no major impediments to closing the deal, and to ensure all relevant documentation is properly drafted.duediligence

If you have never been involved in the due diligence process as part of a major business transaction before, you may be easily overwhelmed by the complicated and time-consuming process. However, acting appropriately during this process can help to ensure the deal is as beneficial for your company as possible. Due diligence is crucial to corporate transactions, but if handled correctly, the process can be done efficiently. Here are some steps to take. Continue reading ›

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Commercial real estate transactions can be lucrative investments, but there may also be high risk due to the amount of money at stake. The following are 4 examples of legal issues that sometimes arise during the sale or purchase of commercial property.

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  1. Accurate Property Valuation

When you are shopping for a product, it is often easy to compare the price and quality to a similar product. However, pieces of real estate are often unique with no exact comparison based on size, age, use, and/or state of the building or land, making accurate valuation significantly more challenging. In addition, any current income stream or potential future income associated with commercial property should also be a factor in determining a fair and reasonable price. Utilizing an experienced commercial appraiser can assist both buyers and sellers with determination of value. Continue reading ›

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Employment in California is generally “at-will,” which means that either the employer or employee may terminate the employment relationship at any time without good cause. However, under certain circumstances termination may be considered unlawful, and an employer can be exposed to possible liability for wrongful termination. It is important to know when termination may be wrongful under the law so that possible legal claims by former employees can be avoided.

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If you have an employment contract

If you and your employee entered into an employment contract that provides job security for a specific duration, California law requires you to show good cause for terminating the employee in breach of the contract. At times, in the absence of a written contract, an employee may try to claim that an employment contract was implied based on promises or other statements made by an employer. In order to avoid any claims of an implied contract, be sure to include clear language regarding “at-will” employment in your handbooks, policies, and all communications with potential employees and employees. Continue reading ›

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An NNN Lease, commonly referred to as Triple Net, is a commonly used commercial lease structure that requires the tenant to pay, in addition to its monthly rent, all costs associated with the operation of the building. Here is an overview of Triple Net, or an NNN Lease, and key concepts to be familiar with.

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What Is Triple Net?

Any number of costs can fall under a net lease, but Triple Net generally refers to the payment of property taxes, maintenance costs and insurance premiums, in addition to the base monthly rent. A Triple Net lease differs from a gross lease in that a gross lease is for a flat monthly amount, inclusive of all operational costs. Continue reading ›

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Partnerships exist when two or more people agree to engage in business for profit. Partnerships can be formed to engage in a number of different ventures, and generally have low start-up costs and do not require many formalities. There a several types of partnerships, each with their own benefits and drawbacks. Two of the most popular are detailed below.

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General Partnerships

In a general partnership, each partner equally owns the business and has full authority to act as an agent of the business, meaning that he or she may make business decisions on behalf of the partnership. There are no formal filing requirements to form a general partnership in the state of California. On the contrary, general partnerships can be formed through an oral or written agreement or simply by the conduct of the parties, if a court determines that an implied partnerships. Importantly, each partner is personally liable for all business debts associated with the partnership. Continue reading ›

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Meal and rest breaks are mandated by the state and allow employees to re-energize and reset during their workday. Surprisingly, providing a lunch break is not a federal requirement, however allowing employees to take breaks can reduce safety-related incidents in many industries. Failing to give an employee adequate breaks can result in steep fines from the state.

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California Law: Meal and Rest Breaks

Employees in California are legally owed meal and rest breaks depending on the amount of time worked. Here are the standard requirements for meal and rest breaks under California law. Continue reading ›

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If you suspect you may be sued due to an incident at your company, or if you’ve been served with a lawsuit, it’s important to act swiftly to protect yourself and by extension any evidence that may be relevant to your lawsuit.

Gathering and saving documentation is an important first step in protecting yourself. In court, there can be severe penalties if you fail to save all evidence that is relevant to your case, documentary or otherwise. Here are 4 things to consider in advance of a lawsuit to help ensure you aren’t accused of withholding information.

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4 Considerations if You Suspect You May Be Sued

  1. Hire Counsel

Hiring an attorney will help protect you and your business. An experienced attorney knows the ins and outs of the legal system and can advise you on how best to prepare if a lawsuit is coming. An attorney may also be able to help you avoid the lawsuit in the first place. Continue reading ›

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Purchasing real estate for investment purposes can be an excellent decision for individuals and businesses alike. Real estate tends to appreciate over the long-term, and both residential and commercial investment properties can generate significant rental income while building equity. Unfortunately in spite of the benefits, investment properties can also expose investors to significant legal liability as well.

Whether your property is an apartment building or a retail lot, issues that commonly arise within a building all have the potential to cause serious injury or financial loss. Fortunately, forming an LLC can help limit real estate investors’ personal liability and protect them from potential financial disaster.

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LLCs Protect Investors from Personal Liability

An LLC, or limited liability company, is a type of business formation that combines the liability protections of a corporation with the flexibility afforded by a partnership. They are particularly attractive to smaller companies and individual investors. LLCs can be owned by individuals or other businesses. Continue reading ›

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Selling your business can make a good profit when sold to the right buyer. When you decide to exit the company, selling your business may be a good strategy. A business sale may not be easy, but there can be many rewards and benefits. If you’re interested in selling your business for profit, there are 3 things to keep in mind to make sure the process goes smoothly and without a legal hitch.

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3 Tips for Selling Your Business

  1. Hire Counsel

You’ll need someone in your court with a background on financial and business transactions. An experienced business attorney can help you prepare necessary documents and close the sale. You’ll want to lay out all finances to see how they may impact your personal wealth. You also won’t want to let the stress of the sale process lead to missed deadlines or late filing of documents. There are a lot of planning, structural, legal, and financial issues involved with the sale of a business, so having an experienced business attorney will be critical to ensure you’re making the right decisions. Continue reading ›

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If you employ workers, chances are good that your business is subject to a number of labor laws enacted by the United States Department of Labor as well as the California Department of Industrial Relations. Failure to comply with these labor laws can cause a lot more than disgruntled workers; non-compliance can result in sanctions by the federal or state government and/or potential legal actions from employees to recover damages. Business owners are often not aware that they are violating the law until it is too late and they are facing costly legal consequences. The best way to preemptively avoid any labor law dispute is to consult with an experienced employment law attorney to ensure all of your policies and practices are in line with the law.

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Topics Covered By Labor Laws

Labor laws such as the Fair Labor Standards Act (FLSA) and the California Labor Code cover a wide variety of topics related to employees, compensation, and more. The following are only a handful of issues that labor laws may affect: Continue reading ›