Buying a Business in Massachusetts
Investing in a business can be profitable 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 Seekonk, 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. Accordingly, the party buying a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. Federal and Massachusetts guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. However, due diligence will lead to a better informed decision concerning whether you want to buy the business. Also, it will help the business to transition more smoothly to new ownership.
How Much Will the Business Cost?
Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. 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 Seekonk Attorney Help?
In Massachusetts, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Massachusetts law practicing in Seekonk can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.