Buying a Business in Maine

Investing in a business can be beneficial 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?

If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party gains all assets and the customer base of the business, plus it also assumed 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". The process of due diligence uses Federal and Maine guidelines to protect both parties. If these guidelines are not followed, a party might be found in breach of a legal duty. 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?

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 Maine. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Sanford Attorney Help?

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