Buying a Business in Kansas
Investing in a business can be profitable for companies and private parties. The transaction can be complicated, however.
There are Federal and Kansas laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.
What Parts of the Business Am I Buying?
When someone buys a business in El Dorado, they are actually gaining the right to direct business operations as they see fit. This right is called ?control? of the business. Control entails ownership of all the assets and customer base of the business, but it also includes the responsibility for that company?s debts and liabilities. 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 gains this understanding. In the process of due diligence, Federal and Kansas guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is purchased.
How Much Will the Business Cost?
Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. There are specific laws in Kansas 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 El Dorado Attorney Help?
In Kansas, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Kansas law practicing in El Dorado can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.