Buying a Business in Arkansas

Purchasing a business can be an beneficial investment for both individuals and companies. However, the transaction is much more complicated than an usual purchase.

Purchasing a business occasionally involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Arkansas and Federal law.

What Parts of the Business Am I Buying?

The purchase of a business in Maumelle is actually the purchasing of a right called "control". With this right, a party can direct business operations as it sees fit, it acquires ownership of business assets, and it assumes liability for all business debts. Accordingly, the party purchasing a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. In the process of due diligence, Federal and Arkansas guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is bought.

How Much Will the Business Cost?

The cost of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The procedure for how the right of control can be transferred or modified is defined by particular laws in Arkansas. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Maumelle Attorney Help?

The laws in Arkansas place many unique demands on parties seeking to purchase businesses. An attorney in Maumelle, Arkansas can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.