Buying a Business in California

Purchasing a business can be an beneficial 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 Sierra Madre is actually the purchasing 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. Accordingly, the party purchasing a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. 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 procedure 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?

The price of a business depends on the value of the ownership stake that is necessary to exert control, and this in turn is determined somewhat by the value of the business property and the type of business. There are particular laws in California that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.

How Can a Sierra Madre Attorney Help?

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