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 a normal 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. In the process of due diligence, Federal and Connecticut guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. Following the process of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
The price of a business depends on the value of the ownership stake that is necessary to exert control, and this in turn is decided somewhat by the value of the business property and the type of business. There are specific laws in Connecticut that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.
How Can a Ledyard Attorney Help?
In Connecticut, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Connecticut law practicing in Ledyard can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.