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 Mayfield 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. 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 Kentucky 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 a business will cost varies on the type of business, how much ownership stake you need to assert control, and the value of the business property. 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 Mayfield Attorney Help?
Kentucky poses unique demands that a party purchasing a business must meet. Lawyers practicing in Mayfield are experienced in Kentucky law, and can find the cheapest way for you to purchase control of a business.