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 a normal 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 Waterford 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". The process of due diligence uses Federal and Connecticut guidelines to protect both parties. If these guidelines are not followed, a party might be found in breach of a legal duty. Following the process of due diligence dutifully is the best way to inform oneself for whether to purchase a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.
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 might add to the price as well. 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 Waterford Attorney Help?
Connecticut poses unique demands that a party purchasing a business must meet. Lawyers practicing in Waterford are experienced in Connecticut law, and can find the cheapest way for you to purchase control of a business.