Buying a Business in Michigan
Investing in a business can be advantageous for companies and private parties. The transaction can be complicated, however.
Federal and Michigan 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?
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 acquires 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 buyer to make his decision. This picture is gained through a process called "due diligence". Federal and Michigan guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. Following the process of due diligence dutifully is the best way to inform oneself for whether to buy 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 may add to the price as well. The process for how the right of control can be transferred or modified is defined by specific laws in Michigan. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Eastpointe Attorney Help?
The laws in Michigan place many unique demands on parties seeking to purchase businesses. An attorney in Eastpointe, 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.