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 Sedgwick County, 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. Accordingly, the party purchasing a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. Federal and Kansas guidelines are used in the process of due diligence, and not using these guidelines can lead to legal consequences. However, due diligence will lead to a better informed decision concerning whether you want to purchase the business. Also, it will help the business to transition more smoothly to new ownership.
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 Kansas. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Sedgwick County Attorney Help?
In Kansas, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Kansas law practicing in Sedgwick County can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.