Buying a Business in Louisiana
Investing in a business can be beneficial for companies and private parties. The transaction can be complicated, however.
There are Federal and Louisiana 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. 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 gains this understanding. In the process of due diligence, Federal and Louisiana guidelines are used to inform both parties. If there is a deviation 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 purchased.
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. There are specific laws in Louisiana that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.
How Can a Grambling Attorney Help?
In Louisiana, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Louisiana law practicing in Grambling can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.