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 occasionally come into play during the purchase of a business

What Parts of the Business Am I Buying?

A purchaser of a business in Greenbelt 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 acquired through a process known as "due diligence". Federal and Maryland guidelines define the process of due diligence, and occasionally legal consequences arise when these procedures are not followed properly. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.

How Much Will the Business Cost?

The price of a business depends on the value of the ownership stake that is necessary to exert control, and this in turn is determined somewhat by the value of the business property and the type of business. The procedure for how the right of control can be transferred or modified is defined by particular laws in Maryland. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Greenbelt Attorney Help?

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