Home Services Acquisition Attorney in California

By Managing Partner Last updated

Acquisition Stars advises buyers and sellers on home services acquisition attorney matters across California.

Serving clients across California.

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Home Services Acquisition Attorney Practice in California

Acquisition Stars advises buyers and sellers on home services acquisition attorney matters across California. Alex Lubyansky leads every engagement, and has been M&A counsel since 2013 across transactions of varying complexity, from lower-middle-market deals to multi-party structures.

California Transaction Considerations

  • California's complete ban on non-competes (Business & Professions Code Sections 16600 and 16600.5) voids agreements regardless of where or when they were signed, overrides choice-of-law provisions applying another state's law to California employees, and gives workers a private right of action with one-way attorney fee shifting
  • The California Environmental Quality Act (CEQA) can delay transactions involving real property or businesses with significant environmental footprints
  • California gives the spouse who operates a community property business primary management and control under Cal. Fam. Code 1100, but that spouse must give the other spouse prior written notice before selling all or substantially all of the business personal property, and both spouses must join to sell community real property

Discuss Your California Transaction

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California Legal Framework for Home Services M&A Legal Services

Non-Compete Agreements

Banned entirely. Limited exception for sale of a business.

Non-compete agreements are void and unenforceable under California Business and Professions Code Section 16600. This ban applies broadly, with narrow exceptions only for the sale of a business (the seller may be restricted from competing with the sold business), dissolution of a partnership, or dissolution of an LLC. Even with the sale-of-business exception, restrictions must be reasonable.

Tax Considerations

California imposes an 8.84% corporate franchise tax on C-corporations and a 1.5% franchise tax on S-corporations. The state does not conform to federal qualified small business stock exclusions. Under California community property rules, the spouse who operates a business that is substantially all community personal property has primary management and control and must give the other spouse prior written notice of a sale of all or substantially all of the business personal property, and both spouses must join to sell or encumber community real property, under Cal. Fam. Code 1100. California sources income based on market-based sourcing rules, which can affect multi-state deal structures.

Filing Requirements

Mergers and asset acquisitions require filings with the California Secretary of State. The California Franchise Tax Board requires tax clearance certificates for dissolving entities. Bulk sales transactions require Notice to Creditors filings. Foreign entities must qualify with the Secretary of State before doing business in California.

Bulk Sales / Asset Purchases

California retains a modified Bulk Sales Act under California Commercial Code Sections 6101-6111, applicable primarily to businesses whose principal activity is the sale of inventory. Buyers must comply with notice requirements to the seller's creditors at least 12 business days before the bulk transfer. Failure to comply allows creditors to void the transfer.

Other M&A and Securities Services in California

Acquisition Stars handles M&A transactions for California clients and works with securities counsel on securities matters. Alex Lubyansky leads every M&A engagement.

Ready to Discuss Your California Deal?

Alex Lubyansky leads every home services m&a legal services engagement, with an associate supporting the work.

M&A counsel since 2013. Nationwide practice. LOI through closing.

Request Engagement Assessment

We review every transaction inquiry within one business day.

Your information is kept strictly confidential and will never be shared. Privacy Policy