Entrepreneurs in Oregon often opt to purchase an established, successful business for obvious reasons of lowering their risk going forward. The process of purchasing a going concern is not quite as easy as it may appear at first blush. Every aspect of business formation contains pitfalls that must be prevented and due diligence that must be performed.
It seems like the perfect situation. You’ve come up with a fantastic idea for a new business, and you even have a person (or two) who seem just as excited as you about turning it into a thriving business.
Nearly all local county and city governments in Oregon and nationwide have by now switched to some form of a digital system of data retrieval and storage. For example, the old ways of having clerks type massive deeds by hand into heavy, burdensome record books are dead. Now vendors offer contracts where they provide high-tech scanning, indexing, and retrieval functions in one package of software.
There are many details to consider when buying a business in Oregon or anywhere else. It is true that purchasing an ongoing business may give the entrepreneur a better chance of succeeding by taking over a tried-and-true enterprise. However, even in this easier area of business formation numerous perceptions can prove wrong and backfire after the purchase.
When starting a business in Oregon due diligence requires that issues of data privacy, cybersecurity and the risk of data breaches be thoroughly researched and accounted for. The same applies in the business formation process that accompanies mergers and acquisitions. The problem of finding security weaknesses and even breaches after the acquisition of a business is common but sometimes disastrous.
Scams against funds held and processed by banking institutions are increasing, including in Oregon. In one such incident, a computer services company recently filed a multi-count business litigation lawsuit against a savings bank that is alleged to have failed in its duty to protect the company's cash deposits in the bank. It is alleged that the bank received an email from a purported employee of Precision Computer Services directing the bank to send $67,560 to a bank in another country.