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?
The purchase of a business in Elizabethtown is actually the buying 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 gained 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 deviation from these guidelines, one party may be held legally accountable. Following the process of due diligence dutifully is the best way to inform oneself for whether to buy a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.
How Much Will the Business Cost?
The price of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The process for how the right of control can be transferred or modified is defined by specific laws in Kentucky. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Elizabethtown Attorney Help?
Kentucky poses unique demands that a party purchasing a business must meet. Attorneys practicing in Elizabethtown are knowledgeable in Kentucky law, and can find the cheapest way for you to purchase control of a business.