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 occasionally come into play during the purchase of a business

What Parts of the Business Am I Buying?

When someone purchases a business in Stoughton, 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 purchasing 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 using 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 bought.

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 procedure for how the right of control can be transferred or modified is defined by particular laws in Massachusetts. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Stoughton Attorney Help?

The laws in Massachusetts place many unique demands on parties seeking to purchase businesses. An attorney in Stoughton, 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.