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 an usual 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. Following the process of due diligence dutifully is the best way to inform oneself for whether to buy a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.

How Much Will the Business Cost?

How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business may add to the price as well. 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 Fountain Attorney Help?

There are unique requirements in Colorado that a party purchasing a business must fulfill. In Fountain, an attorney knowledgeable in Colorado law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.