Buying a Business in Maine
Investing in a business can be advantageous for companies and private parties. The transaction can be complicated, however.
Federal and Maine 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 Biddeford 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. 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. Through due diligence, federal and Maine guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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?
The cost of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The procedure for how the right of control can be transferred or modified is defined by particular laws in Maine. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Biddeford Attorney Help?
The laws in Maine place many unique demands on parties seeking to purchase businesses. An attorney in Biddeford, Maine 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.