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.
Federal and Connecticut law concerning mergers, acquisitions, negotiations and securities exchange sometimes come into play during the purchase of a business
What Parts of the Business Am I Buying?
Buying a business in Storrs 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 gained through a process known as "due diligence". The process of due diligence uses Federal and Connecticut guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. However, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
The price of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. 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 Storrs Attorney Help?
In Connecticut, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Connecticut law practicing in Storrs can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.