Buying a Business in Kentucky
Investing in a business can be advantageous 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?
The purchase of a business in Dayton is actually the purchasing of a right called "control". With this right, a party can direct business operations as it sees fit, it acquires ownership of business assets, and it assumes liability for all business debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". 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. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.
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 Dayton Attorney Help?
The laws in Kentucky place many unique demands on parties seeking to purchase businesses. An attorney in Dayton, Kentucky 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.