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 Southampton, 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, 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?
How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business may add to the price as well. There are specific laws in Massachusetts 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 Southampton Attorney Help?
There are unique requirements in Massachusetts that a party purchasing a business must fulfill. In Southampton, an attorney knowledgeable in Massachusetts law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.