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 San Bernardino 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. Federal and California guidelines define the process of due diligence, and sometimes legal consequences arise when these procedures are not followed properly. However, due diligence will lead to a better informed decision concerning whether you want to buy the business. Also, it will help the business to transition more smoothly to new ownership.
How Much Will the Business Cost?
The price of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. 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 San Bernardino Attorney Help?
In California, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in California law practicing in San Bernardino can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.