Buying a Business in California

Buying a business can be an advantageous investment for both individuals and companies. However, the transaction is much more complicated than a traditional purchase.

There are Federal and California laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.

What Parts of the Business Am I Buying?

The purchase of a business in Red Bluff is actually the buying 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. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. In the process of due diligence, Federal and California guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. However, due diligence will lead to a better informed decision concerning whether you want to buy the business. Also, it will help the business to transition more smoothly to new ownership.

How Much Will the Business Cost?

Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. The process for how the right of control can be transferred or modified is defined by specific laws in California. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Red Bluff Attorney Help?

The laws in California place many unique demands on parties seeking to purchase businesses. An attorney in Red Bluff, California 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.