Buying a Business in California

Arcata Buying a Business Attorneys, CA

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

Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by California 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. In the process of due diligence, Federal and California 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?

How much a business will cost depends on the type of business, how much ownership stake you need to assert control, and the value of the business property. The process for how the right of control can be transferred or modified is defined by specific laws in California. Procedures may make buying a business more or less expensive than simply the market value of its assets.

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How Can a Arcata Attorney Help?

There are unique requirements in California that a party purchasing a business must fulfill. In Arcata, an attorney knowledgeable in California law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.

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