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 traditional 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. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer acquires this understanding. Through due diligence, federal and Colorado guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. However, obedience to the process of due diligence leads to a better informed decision about purchasing the business. And afterwards, it may also help the ownership transfer to go more smoothly.

How Much Will the Business Cost?

The cost of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The procedure for how the right of control can be transferred or modified is defined by particular laws in Colorado. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Frederick Attorney Help?

There are unique requirements in Colorado that a party purchasing a business must fulfill. In Frederick, 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.