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business clients

Small Business Acquisitions

Acquisitions are nothing new. Your lawyer will call my lawyer or leave a message on my machine – or something like that. The problem starts with smaller acquisitions, where lawyer’s service would cost just as much as the cost of acquisition itself.

Last couple of days I was involved in the sale of my client’s web site. He sold his Russian food web site to another entrepreneur who already owns a brick and mortar store plus couple of related web sites. Obviously I cannot disclose the amount, but let’s just say it’s not large enough to think about involving lawyers.

The way the sale was proceeding was a good example of lack of knowledge on the part of small business owners. Small business owners don’t quite realize what is being sold and bought during the transfer of rights to the web site and it’s domain name. Some people think that the actual CD with web site code and database is the object of sale. Some think it’s a domain name. Some think it’s the login and password to administration area of the web site.

In either case while being the web master for the web site in question I became a third party who revised the contract, got the CD with latest back up of the web site code and database, passwords to admin area and e-mails.

Domain name and hosting transfer are still pending, as the client who bought the web site doesn’t clearly understand the difference between the two.