Buying a Business in Michigan
Investing in a business can be beneficial for companies and private parties. The transaction can be complicated, however.
Federal and Michigan 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. In the process of due diligence, Federal and Michigan guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. Following the process of due diligence dutifully is the best way to inform oneself for whether to purchase a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.
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 Michigan. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Bay City Attorney Help?
The laws in Michigan place many unique demands on parties seeking to purchase businesses. An attorney in Bay City, Michigan 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.