Buying a Business in District of Columbia
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 District of Columbia 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 Washington 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". Federal and District of Columbia guidelines define the process of due diligence, and occasionally legal consequences arise when these procedures are not followed properly. However, obedience to the process of due diligence leads to a better informed decision about purchasing the business. And afterwards, it may also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
The cost 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. There are particular laws in District of Columbia 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 Washington Attorney Help?
In District of Columbia, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in District of Columbia law practicing in Washington can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.