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?
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 Connecticut. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Canterbury Attorney Help?
There are unique requirements in Connecticut that a party purchasing a business must fulfill. In Canterbury, an attorney knowledgeable in Connecticut law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.