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 Santa Clara 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, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may also help the ownership transfer to go more smoothly.
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 California. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Santa Clara Attorney Help?
The laws in California place many unique demands on parties seeking to purchase businesses. An attorney in Santa Clara, California can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.