Legal Due Diligence Mistakes To Avoid When Acquiring An E-commerce Business with Paul Rafelson

When acquiring an e-commerce business, conducting thorough legal due diligence is essential to mitigating risk and ensuring a sound investment. Overlooking critical legal aspects can lead to unforeseen liabilities, intellectual property disputes, or tax complications that may jeopardize the deal. In this episode, Jaryd Krause speaks with Paul Rafelson, a seasoned attorney with over 15 years of experience in corporate law, M&A, intellectual property, and tax matters. A highly regarded expert in the e-commerce space, Rafelson is frequently cited in major news outlets and was the most referenced source in the U.S. government’s investigation into Amazon’s business practices regarding third-party merchants. Before launching his private practice focused on e-commerce businesses, he held in-house legal positions at major corporations such as Microsoft, Walmart, and General Electric. This discussion explores the most common legal due diligence mistakes buyers make when acquiring an e-commerce business, the risks sellers often overlook, and strategies to protect both parties. The conversation also dives into legal pitfalls specific to Amazon-based businesses, where a significant portion of revenue is tied to a single product. Additionally, Rafelson provides insight into why some lawyers hinder deals rather than facilitate them and offers guidance on selecting legal professionals specializing in e-commerce acquisitions. Tune in to gain expert knowledge on safeguarding an e-commerce acquisition through proper legal due diligence. Now, let’s dive in! Episode Highlights 03:00 Paul’s journey into M&A 11:00 Acquire trademarks too! 19:00 What to check when buying a business? 24:30 What is going to the beach syndrome? 31:30 Why understanding risks are important? Key Takeaways ➥ Proper due diligence ensures a smoother acquisition process and prevents legal pitfalls. ➥ Buyers must focus on IP rights, legal compliance, and financing options to make informed decisions. ➥ As the market evolves, understanding these factors is key to successful e-commerce investments. About The Paul Rafelson Paul Rafelson is an experienced attorney with over 15 years in complex Corporate, Intellectual Property M&A and Tax matters. He is also a trusted resource in the e-commerce world, regularly quoted in the news on the issues involving Amazon and e-commerce. Paul was also the most-cited source of information in the US government's investigation into Amazon’s business practices as it pertains to third-party merchants. Before starting a private practice dedicated to the needs of e-commerce businesses, Paul spent the majority of his career in-house at some of the largest companies in the world such as Microsoft, Walmart, and General Electric. Connect with Paul Rafelson ➥ www.ecom.law➥ www.sellerbasics.com Resource Links ➥ Buying Online Businesses Website - https://buyingonlinebusinesses.com ➥ Sell your business to us here - https://buyingonlinebusinesses.com/sell-your-business/ ➥ Download the Due Diligence Framework - https://buyingonlinebusinesses.com/freeresources/➥ Connect with Jaryd here - https://www.linkedin.com/in/jarydkrause ➥ Hostinger (Website Hosting) - https://bit.ly/3HUqW0s ➥ SEM Rush (SEO tool) - https://bit.ly/3lINGaV ➥ Convert Kit (Email Software Provider) - https://bit.ly/3o10Xgx 🔥Buy & Sell Online Businesses Here (Top Website Brokers We Use) 🔥 ➥ Empire Flippers - https://bit.ly/3RtyMkE ➥ Flippa - https://bit.ly/3wGa8r5 ➥ Motion Invest - https://bit.ly/3YmJAmO➥ Investors Club - https://bit.ly/3ZpgioR *This post may contain affiliate links, so we may earn a small commission when you make a purchase through links on our site/posts at no additional cost to you.See omnystudio.com/listener for privacy information.