Buying a Business in Maryland

Investing in a business can be profitable for companies and private parties. The transaction can be complicated, however.

Federal and Maryland 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?

A buyer of a business in Frederick County gains a right called "control", which is the right to direct the business operations as they see fit. Control involves ownership of the business assets and customers, along with the company's debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is gained through a process known as "due diligence". The process of due diligence uses Federal and Maryland 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 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. The process for how the right of control can be transferred or modified is defined by specific laws in Maryland. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Frederick County Attorney Help?

Maryland poses unique demands that a party purchasing a business must meet. Attorneys practicing in Frederick County are knowledgeable in Maryland law, and can find the cheapest way for you to purchase control of a business.