Beyond the Dollar Amount and What Mediation Can Address That Litigation Often Cannot

Buying an existing business can be an appealing alternative to starting one from scratch. The customer base, employees, equipment, vendor relationships, and operating history may already be in place. But a business that looks successful from the outside can come with obligations and risks that are not immediately apparent. Before signing a purchase agreement, buyers should understand exactly what obligations may come with the transaction and whether the business is in the financial and legal position the seller has represented. Look Beyond the Financial Statements Financial records are an important part of evaluating a potential acquisition, but due diligence should extend well beyond revenue and profitability. A buyer should review the business's tax records, debts, pending or threatened litigation, insurance coverage, licenses and permits, and any liens or other claims involving business assets. Existing contracts also deserve careful attention. Agreements with customers, vendors, suppliers, lenders, and other third parties can have a significant impact on the value of the business. Some contracts may be transferred to a new owner, while others require consent or contain provisions allowing the other party to terminate the agreement after a change in ownership. If the business operates from leased property, the commercial lease can be equally important. Buyers should understand how much time remains on the lease, renewal options, rent increases, maintenance obligations, and whether the landlord must approve an assignment or a new lease. Vermont buyers should also be aware of state-specific obligations that can arise in connection with a business transfer. For example, Vermont law includes notice requirements involving certain bulk transfers of business assets and provisions that may affect a buyer that continues the operations of an existing employer. Know the Value of What You Are Buying Employees can be one of a business's most valuable assets, particularly when customer relationships or specialized knowledge depend on particular people. Before closing, buyers should understand the existing workforce, compensation and benefits, employment agreements, accrued obligations, and any ongoing employment disputes. In Vermont, acquiring and continuing an existing business can also have implications for unemployment insurance. Under certain circumstances, an acquiring business may be treated as a successor employer, and the predecessor's experience-rating record may transfer to the successor. Buyers should also identify precisely which physical and intangible assets are included in the purchase. Depending on the business, that might include equipment, inventory, vehicles, intellectual property, websites and domain names, customer information, trade names, or other valuable rights. It is important to determine not only that the seller possesses these assets, but also whether they are subject to liens or security interests that need to be addressed before closing. Asset Purchase or Equity Purchase? One of the most important decisions in structuring an acquisition is whether to purchase the assets of the business or the ownership interests in the company itself. In an asset purchase, the buyer generally purchases specifically identified assets and assumes only the liabilities identified in the agreement, subject to applicable law. This structure can give the parties greater ability to define what is — and is not — part of the transaction. In an equity purchase, the buyer purchases ownership of the existing company. The business entity continues to own its assets and remain subject to its contractual obligations and liabilities. That makes a careful investigation of the company's history particularly important. Neither structure is automatically better. Tax consequences, contracts, licenses, liabilities, financing, and the buyer's plans for the business can all influence how a transaction should be structured. Contact Deppman Law PLC  Purchasing a business is a significant investment, and issues discovered after closing can be far more difficult and expensive to address than those identified during negotiations. An attorney can help evaluate the proposed transaction, conduct legal due diligence, identify potential risks, and prepare or review the agreements necessary to protect the buyer's interests. If you are considering buying a business in Vermont, contact Deppman Law PLC to learn more about the acquisition process and the steps you can take before signing.

One of the first questions many people ask when considering mediation is, “How long will this take?” The answer depends on several factors, including the type of dispute, the number of issues involved, and the willingness of the parties to work toward a resolution. However, one of the reasons mediation is so popular is that it is often significantly faster than traditional litigation. While court cases can take months—or even years—to resolve, many mediation matters can be completed in a matter of weeks or a few sessions. Every Dispute Is Different There is no one-size-fits-all timeline for mediation. Some disputes can be resolved in a single session lasting just a few hours. Others may require multiple meetings spread over several weeks or months. For example: A straightforward neighbor dispute may be resolved in one session. A family matter involving parenting arrangements or property issues may require several meetings. A business dispute involving multiple parties and complex financial information may take longer. The goal is not to rush the process but to provide enough time for meaningful discussion and problem-solving. What Happens Before Mediation Begins? The mediation process often starts before anyone sits down at the table. Participants may need to gather documents, exchange information, identify issues, and schedule sessions. Depending on the circumstances, this preparation period can take anywhere from a few days to several weeks. Being organized and prepared often helps the mediation process move more efficiently once discussions begin. Factors That Affect the Timeline Several factors can influence how quickly mediation progresses. These include: The complexity of the issues involved The number of participants The amount of information that must be reviewed Scheduling availability The level of conflict between the parties Whether outside experts or attorneys are involved Cases involving strong emotions or long-standing disagreements may require additional time as participants work through difficult conversations. Mediation Is Often Faster Than Litigation One of the biggest advantages of mediation is that the parties control the timeline. In court, scheduling depends on the availability of judges, attorneys, and court resources. Delays are common, and hearings may be scheduled months apart. In mediation, participants can often schedule sessions much sooner and proceed at a pace that works for everyone involved. Even when mediation requires multiple sessions, it frequently reaches resolution far more quickly than litigation. Quality Matters More Than Speed Although many people are eager to resolve disputes quickly, the ultimate goal of mediation is to reach a durable and workable agreement. Taking the time to understand concerns, explore options, and develop mutually acceptable solutions often leads to better long-term outcomes than simply obtaining a quick decision from a court. The most successful mediations balance efficiency with thoughtful discussion. Contact Langrock Mediation If you are considering mediation and wondering what the process might look like for your situation, Langrock Mediation can help. We work with individuals, families, businesses, and organizations throughout Vermont to facilitate productive conversations and efficient dispute resolution. Contact Langrock Mediation today to learn more about the mediation process and how it may help you move forward.