Buying a Business in Michigan

Investing in a business can be profitable 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 Sault Ste. Marie, 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 purchaser will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. In the process of due diligence, Federal and Michigan guidelines are used to inform both parties. If there is a violation from these guidelines, one party may be held legally accountable. 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 Sault Ste. Marie Attorney Help?

Michigan poses unique demands that a party purchasing a business must meet. Lawyers practicing in Sault Ste. Marie are experienced in Michigan law, and can find the cheapest way for you to purchase control of a business.