Buying a Business in Michigan
Investing in a business can be profitable 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. A complete picture of the financial position of the business is important for the purchaser to make his decision. This picture is acquired through a process called "due diligence". Through due diligence, federal and Michigan guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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?
How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business might add to the price as well. There are particular laws in Michigan 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 Clintonship Attorney Help?
There are unique requirements in Michigan that a party purchasing a business must fulfill. In Clintonship, an attorney experienced in Michigan law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.