Buying a Business in Alaska
Buying a business can be an advantageous investment for both individuals and companies. However, the transaction is much more complicated than a traditional purchase.
Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Alaska and Federal law.
What Parts of the Business Am I Buying?
A buyer of a business in Ketchikan gains a right called "control", which is the right to direct the business operations as they see fit. Control involves ownership of the business assets and customers, along with the company's debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is gained through a process known as "due diligence". The process of due diligence uses Federal and Alaska guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. Following the process of due diligence dutifully is the best way to inform oneself for whether to buy a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.
How Much Will the Business Cost?
The price 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 process for how the right of control can be transferred or modified is defined by specific laws in Alaska. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Ketchikan Attorney Help?
The laws in Alaska place many unique demands on parties seeking to purchase businesses. An attorney in Ketchikan, Alaska 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.