Buying a Business in Connecticut
Purchasing a business can be an beneficial investment for both individuals and companies. However, the transaction is much more complicated than an usual purchase.
Federal and Connecticut law concerning mergers, acquisitions, negotiations and securities exchange occasionally come into play during the purchase of a business
What Parts of the Business Am I Buying?
Purchasing a business in Plainville is gaining the right to direct business operations. When a party directs operations as they see fit, their right is called ?control? of the business. Like ownership, control includes the right to all the property of the business as well as the assumption of the business debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". In the process of due diligence, Federal and Connecticut guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is bought.
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 procedure for how the right of control can be transferred or modified is defined by particular laws in Connecticut. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Plainville Attorney Help?
In Connecticut, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Connecticut law practicing in Plainville can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.