Buying a Business in Michigan

Investing in a business can be beneficial for companies and private parties. The transaction can be complicated, however.

There are particular laws in Michigan and the US that concern negotiations, mergers, acquisitions and securities exchanges. You may need to consider how these laws impact your situation before you buy a business.

What Parts of the Business Am I Buying?

When someone purchases a business in Howell, they are actually gaining the right to direct business operations as they see fit. This right is called ?control? of the business. Control entails ownership of all the assets and customer base of the business, but it also includes the responsibility for that company?s debts and liabilities. 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. 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, obedience to the process of due diligence leads to a better informed decision about purchasing the business. And afterwards, it may also help the ownership transfer to go more smoothly.

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 Michigan. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Howell Attorney Help?

In Michigan, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in Michigan law practicing in Howell can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.