February 1, 2013
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Theoretically…
…I’ve had enough law this past quarter to resolve the following hypothetical (I think I’ve left out Tort and Con. Law issues):
“Businessperson X approaches you and is interested in expanding his business. He has contacted a potential purchaser in the Netherlands about buying his goods. However, he cannot acquire enough raw materially domestically to meet the demands, but he has several potential suppliers in the Middle East, Mexico, and Brazil. Furthermore, he’s currently operating his business as a sole proprietorship. X anticipates that the business will grow substantially as a result. To that he’s interested in purchasing a local state-law corporation whose single owner has offered to sell him all the stock in the corporation so he can take over the business. He is not individually wealthy and his business assets are not substantial.
If the expansion takes place, X wants to be sure to include several employees as owners in the venture. These employees made the business profitable this last year after having run losses in the previous three years. They were also instrumental in creating the brand logo that has helped the company do so well.
Furthermore, X is in the midst of an affair. He’s planning to divorce his spouse and marry his girlfriend. He has an inclination that the girlfriend is a gold digger, and while he’s madly in love, he’s still a little suspicious. Although his relationship with his wife is strained, he stays close with his children and would like to see his business eventually go to them.”
Advise X on his options to achieve his goals, being sure to cover possible liabilities, risk management, trade law, and income and transfer tax consequences. Recommend a plan for him to aid this next phase of the rest of his life.
I think a fact pattern like this could easily result in dozens of billable hours. Easily. But, that may be because I’m slow and inefficient.
Comments (2)
I don’t know much, but he could be taking to much hay on his fork( whatever that means).
It is a good thing to separate business and private life.
@carlo - The trouble is, my state is a community property state (like lots of countries in Europe), half of the business belongs to the spouse! No question, the businessperson probably does have too much hay on his fork…and in his bed too!