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New Jersey's Hess Corp. sells retail gas stations to Marathon

There are many reasons people start, buy and expand businesses. They may want to find financial stability, leave their children with a well-founded asset or leave their community and, in some cases, the world in a better place. But just as there are a vast number of reasons for forming a business, there can be just as many for selling one. Business owners may be acting on exit strategies, a parent company may see profit potential or a company may wish to raise money to expand their business in another direction.

The sale of a business is no easy feat. There are many legal complexities that must be addressed to ensure the deal is fair and risks are minimized. Failing to carefully craft a purchase agreement may lead to disastrous consequences that might leave one party feeling cheated. For this reason, it is imperative that every step is taken to ensure the deal goes smoothly, which may include speaking with an experienced New Jersey business law attorney.

Hess Corp. likely needed that help in order to complete the recent sale of their retail gas business to Marathon Petroleum. The deal will give Marathon Hess' more than 1,300 stations in exchange for $2.6 billion dollars. Hess hopes to use the proceeds of the sale to increase its stock repurchase program. The company believes the sale will complete its transformation into a purely exploration and production company.

Though it may sound daunting and there may be a lot of paperwork, obtaining sound advice from an attorney regarding business sales may be the best way to ensure everything goes according to plan. A business transaction like this has many moving pieces. Not only does a purchase price have to be negotiated, but assets must be valued, debts assessed and due diligence must be conducted to assess financial and market risks.

Source: NJBIZ, "Hess sells retail gas business for $2.8B," May 22, 2014

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