4 Legal Red Flags You Need To Know before buying a Business: Eric Hsu

June 05, 2023

by a professional from Northern Arizona University in Tucson, AZ, USA

My guest today is Eric Hsu a Business Acquisition Lawyer. Eric helps self-funded entrepreneurs negotiate/structure/close SMB acquisition deals

SHOW NOTES:

00:35 Intro to Eric (audio off on Eric's side a bit at beginning)

01:25 What he was doing before SMB M&A Lawyer

02:48 Setting the date for the the jump

03:48 Why M&A?

05:44 What does a SMB Buyside lawyer do for clients?

06:59 How/where do you start - what is first?

08:41 Red Flag #1

09:22 Does that kill the deal or can it be fixed?

10:00 Stock purchase vs Asset Purchase - why would you go that way?

11:43 Can you purchase a business without the credentials?

14:08 Coaching the clients ahead of time

15:12 Red Flag #2

17:27 Should the marriage partner need to be at the table?

18:10 Red Flag #3

20:58 Getting the same contract as seller with equipment

22:37 Getting leverage concessions on price

25:16 Red Flag #4

28:13 Not kill the deal but get it in compliance - punch list

29:22 Do you recommend R&A insurance

30:29 Any advice on accounting ethical issues?

31:39 History on the individuals - why you want your clients to know.

33:30 Untouchable deals - Laundromat Aficionado

37:33 How do you charge for your work?

38:22 What is ChatGPT doing for attorney work

41:25 Can search for IRS data?

41:38 What work do you turn down?

42:52 Decision not to overload - what is the goal?

44:52 How do you market a solo SMB M&A law firm

46:39 What is a WIN for Eric

https://youtu.be/ASubBjv-Rvc