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 sometimes come into play during the purchase of a business
What Parts of the Business Am I Buying?
A buyer of a business in Harpswell 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 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. The process of due diligence uses Federal and Maine guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. However, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
The price 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. There are specific laws in Maine 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 Harpswell Attorney Help?
In Maine, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Maine law practicing in Harpswell can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.