Buying a Business in California

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

There are Federal and California laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.

What Parts of the Business Am I Buying?

The purchase of a business in Merced County 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. 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 California 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 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.

How Can a Merced County Attorney Help?

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