Buying a Business in Massachusetts
Investing in a business can be advantageous 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 Concord, 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?
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 Massachusetts. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Concord Attorney Help?
The laws in Massachusetts place many unique demands on parties seeking to purchase businesses. An attorney in Concord, Massachusetts can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.