Buying a Business in Kentucky

Investing in a business can be beneficial for companies and private parties. The transaction can be complicated, however.

There are Federal and Kentucky 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 Ashland, 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. In the process of due diligence, Federal and Kentucky guidelines are used to inform both parties. If there is a violation 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 bought.

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. The procedure for how the right of control can be transferred or modified is defined by particular laws in Kentucky. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Ashland Attorney Help?

There are unique requirements in Kentucky that a party purchasing a business must fulfill. In Ashland, an attorney experienced in Kentucky law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.