Buying a Business in Arkansas
Buying a business can be an advantageous investment for both individuals and companies. However, the transaction is much more complicated than a usual purchase.
Buying a business sometimes 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 Lowell 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. 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. In the process of due diligence, Federal and Arkansas guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. Following the process 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 specific laws in Arkansas 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.
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How Can a Lowell Attorney Help?
In Arkansas, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Arkansas law practicing in Lowell can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.