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 normal 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?

If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party acquires all assets and the customer base of the business, plus it also assumed 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". Federal and Arkansas guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is purchased.

How Much Will the Business Cost?

How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business may add to the price as well. The process for how the right of control can be transferred or modified is defined by specific laws in Arkansas. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Newport Attorney Help?

Arkansas poses unique demands that a party purchasing a business must meet. Attorneys practicing in Newport are knowledgeable in Arkansas law, and can find the cheapest way for you to purchase control of a business.