Businesses are bought and sold on a daily basis throughout Louisiana, including here in Baton Rouge. Those businesses that engage in these transactions need to do so with diligence, though, lest they be taken advantage of and lose out significantly.
Acquiring a business means not only negotiating a fair purchase price, but also considering how that business's current client base plays into one's overall business plan. It may help expand into new markets, broaden supply chains, and cut out middle men, but it may also pose new problems.
A group of local investors feels that it has adequately assessed these issues and has decided to move forward with acquiring Uncle Earl's, which is located on Perkins Road. The investors include the owners of Phil's Oyster Bar & Seafood Restaurant, as well as two owners of a local insurance agency and an individual who has been working for the past several years to expand Raising Cane's Chicken Fingers restaurants.
Uncle Earl's new owners intend to keep the name, likely because it is recognized by locals. The new owners hope to capitalize on this value by increasing live performances and updating the outdoor patio. It appears that Uncle Earl's will try to cater to a more upscale crowd, which the market may support.
Those Louisiana businesses that are looking to expand need to make sure they carefully consider the advantages and disadvantages of acquiring another business before doing so. They need to analyze the market they are in or entering into, as well as costs needed to turn the acquired business into a viable entity that will expand profits. Then, once that is accomplished and the decision is made to move forward with an acquisition, businesses need to make sure that they do so in a legally sound way that supports their best interests. Baton Rouge business attorneys stand ready to help with this process.