Buying a Business in Colorado

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 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 acquires 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 gained through a process known as "due diligence". The process of due diligence uses Federal and Colorado guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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?

Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. The process for how the right of control can be transferred or modified is defined by specific laws in Colorado. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a El Paso County Attorney Help?

The laws in Colorado place many unique demands on parties seeking to purchase businesses. An attorney in El Paso County, Colorado 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.