Buying a Business in Alabama

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

Purchasing a business occasionally 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?

The purchase of a business in Pell City 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. 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 acquired through a process known as "due diligence". In the process of due diligence, Federal and Alabama guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.

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. There are particular laws in Alabama that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.

How Can a Pell City Attorney Help?

In Alabama, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Alabama law practicing in Pell City can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.