Buying a Business in Alabama
Buying a business can be an advantageous investment for both individuals and companies. However, the transaction is much more complicated than a normal purchase.
Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Alabama and Federal law.
What Parts of the Business Am I Buying?
A buyer of a business in Jacksonville 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. Accordingly, the party buying 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. The process of due diligence uses Federal and Alabama guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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?
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 Alabama. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Jacksonville Attorney Help?
Alabama poses unique demands that a party purchasing a business must meet. Attorneys practicing in Jacksonville are knowledgeable in Alabama law, and can find the cheapest way for you to purchase control of a business.