Buying a Business in Connecticut
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 Connecticut 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. To make his decision, a buyer will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. Federal and Connecticut guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. However, due diligence will lead to a better informed decision concerning whether you want to buy the business. Also, it will help the business to transition more smoothly to new ownership.
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 Connecticut. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Ansonia Attorney Help?
The laws in Connecticut place many unique demands on parties seeking to purchase businesses. An attorney in Ansonia, Connecticut 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.