Buying a Business in Georgia
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 Georgia 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?
If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party gains all assets and the customer base of the business, plus it also assumed the company's debts. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer acquires this understanding. Through due diligence, federal and Georgia guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines 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. The procedure for how the right of control can be transferred or modified is defined by particular laws in Georgia. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Elberton Attorney Help?
The laws in Georgia place many unique demands on parties seeking to purchase businesses. An attorney in Elberton, Georgia 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.