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 a traditional 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 Walnut 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. In the process of due diligence, Federal and California guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. 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?
How much a business will cost varies on the type of business, how much ownership stake you need to assert control, and the value of the business property. The procedure for how the right of control can be transferred or modified is defined by particular laws in California. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Walnut Attorney Help?
In California, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in California law practicing in Walnut can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.