Buying a Business in Colorado
Purchasing a business can be an beneficial investment for both individuals and companies. However, the transaction is much more complicated than a normal purchase.
There are Federal and Colorado laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.
What Parts of the Business Am I Buying?
If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party gains all assets and the customer base of the business, plus it also assumed the company's debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". In the process of due diligence, Federal and Colorado 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?
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 Colorado 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 Boulder Attorney Help?
There are unique requirements in Colorado that a party purchasing a business must fulfill. In Boulder, an attorney experienced in Colorado law can inform you about the peculiarities of your investment and outline the cheapest way for you to purchase control.