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?
If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party acquires all assets and the customer base of the business, plus it also assumed the company's 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". Federal and Kentucky guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. 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?
How much a business will cost depends on the type of business, how much ownership stake you need to assert control, and the value of the business property. 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 Versailles Attorney Help?
In Kentucky, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Kentucky law practicing in Versailles can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.