Buying a Business in Michigan

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

There are specific 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 buys a business in Rockford, 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 make his decision, a buyer will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. Federal and Michigan guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. However, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may also help the ownership transfer to go more smoothly.

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 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 Rockford Attorney Help?

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