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. The process of due diligence uses Federal and Colorado guidelines to protect both parties. If these guidelines are not followed, a party might 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 purchase 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 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 Colorado. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Rocky Ford Attorney Help?

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