Buying a Business in Massachusetts
Investing in a business can be beneficial for companies and private parties. The transaction can be complicated, however.
Federal and Massachusetts law concerning mergers, acquisitions, negotiations and securities exchange sometimes come into play during the purchase of a business
What Parts of the Business Am I Buying?
When someone buys a business in Cohasset, they are actually gaining the right to direct business operations as they see fit. This right is called ?control? of the business. Control entails ownership of all the assets and customer base of the business, but it also includes the responsibility for that company?s debts and liabilities. 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. The process of due diligence uses Federal and Massachusetts guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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 Massachusetts. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Cohasset Attorney Help?
In Massachusetts, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Massachusetts law practicing in Cohasset can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.