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 a normal 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 Porterville 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. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. Through due diligence, federal and California 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?

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 California. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Porterville Attorney Help?

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