I have searched but have been unable to find any clear advice on this topic from the internet or this forum that directly applies to my situation...
I have been recently offered an opportunity: to going into a business with a friend after he closes his current business. His business has been very profitable, but the owners (except him) are tired. They are almost completely out of debt
Old Business = BusA , New Business (Us) = BusB
Some ideas, we would like to:
1) Continue offering one of the services that BusA offers; firewall protection (not all of the services; just one to continue bringing in revenue and keep customer base)
2) Transfer (or buy) all of the customers from BusA that use the service mentioned above
3) Continue using all of the employees from BusA.
4) Use some of the final revenue from BusA to transfer to BusB for startup expenses. All debts will be paid for in BusA (we are not moving money to prepare for bankruptcy or anything)
5) Transfer (or buy) all of the existing equipment from BusA
It will be a very different business. The firewall service offered wasn't part of their main business plan in BusA, they began to offer it as a side-service. But it fits more in-line with our new business model. BusB will be offering a completely different service than BusA, eventually.
At the end of the day, all debts will be cleared with BusA. But my concern is this: There was recently a lawsuit filed against one of their vendors. There is potential for BusA to be sued, by default, not due to their negligence (it's just a thought, there isn't a pending lawsuit or any solid leads that I know of). Opening up this new business with him, I do not want the suing company to feel that he closed his business to prevent being sued, and begin to attack the new business (due to us having the same employees, some of the same customers and services, equipment, etc). I want to get as much information as possible to ensure a solid foundation for the new business, and I don't want to have the fear of being sued hanging over my head from the beginning.
Any and every bit of advice is greatly appreciated. If you need any more information, please let me know. I'm eager to know what you guys think.
Bookmarks