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?
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. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer acquires this understanding. 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 Waterville Attorney Help?
In Maine, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Maine law practicing in Waterville can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.