MidwestGuy
New Member
I am exploring the purchase of an existing business, but something bothers me. A loan was taken out in this business' name, a C-Corp, to purchase the site it occupies. This is not shown in the assets or long term liabilities. The business broker stated it was setup as a retirement investment for the seller, therefore it's not on the books.
First of all, I don't know if this is legal. Secondly, assuming a buyer does an asset purchase as opposed to buying the company, if the seller later defaults is the buyer stuck with the mortgage?
I will be consulting a business attorney. However, I want as many opinions on this as possible.
First of all, I don't know if this is legal. Secondly, assuming a buyer does an asset purchase as opposed to buying the company, if the seller later defaults is the buyer stuck with the mortgage?
I will be consulting a business attorney. However, I want as many opinions on this as possible.
