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 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". The process of due diligence uses Federal and Michigan guidelines to protect both parties. If these guidelines are not followed, a party might be found in breach of a legal duty. However, due diligence will lead to a better informed decision concerning whether you want to purchase the business. Also, it will help the business to transition more smoothly to new ownership.
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 Michigan. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Farmington Attorney Help?
In Michigan, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Michigan law practicing in Farmington can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.