Buying a Business in Delaware
Purchasing a business can be an beneficial investment for both individuals and companies. However, the transaction is much more complicated than a traditional purchase.
Federal and Delaware 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 New Castle County 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. A complete picture of the financial position of the business is important for the purchaser to make his decision. This picture is acquired through a process called "due diligence". Through due diligence, federal and Delaware guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. Following the procedure 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 determined somewhat by the value of the business property and the type of business. The procedure for how the right of control can be transferred or modified is defined by particular laws in Delaware. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a New Castle County Attorney Help?
The laws in Delaware place many unique demands on parties seeking to purchase businesses. An attorney in New Castle County, Delaware can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.