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 purchases a business in Lawrence, 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 acquires this understanding. Federal and Kansas guidelines define the process of due diligence, and occasionally legal consequences arise when these procedures are not followed properly. 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 bought.
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 Kansas. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Lawrence Attorney Help?
Kansas poses unique demands that a party purchasing a business must meet. Lawyers practicing in Lawrence are experienced in Kansas law, and can find the cheapest way for you to purchase control of a business.