Buying a Business in Arizona
Buying a business can be an advantageous investment for both individuals and companies. However, the transaction is much more complicated than an usual purchase.
Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Arizona 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. To make his decision, a buyer will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. Through due diligence, federal and Arizona guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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 depends on the value of the ownership stake that is necessary to exert control, and this in turn is decided somewhat by the value of the business property and the type of business. The process for how the right of control can be transferred or modified is defined by specific laws in Arizona. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Sierra Vista Attorney Help?
There are unique requirements in Arizona that a party purchasing a business must fulfill. In Sierra Vista, an attorney knowledgeable in Arizona law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.