Buying a Business in Minnesota

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

There are particular laws in Minnesota 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?

The purchase of a business in North St. Paul is actually the purchasing of a right called "control". With this right, a party can direct business operations as it sees fit, it acquires ownership of business assets, and it assumes liability for all business debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". Federal and Minnesota guidelines are used in the process of due diligence, and not using these guidelines can lead to legal consequences. 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 price of a business depends on the value of the ownership stake that is necessary to exert control, and this in turn is determined somewhat by the value of the business property and the type of business. The procedure for how the right of control can be transferred or modified is defined by particular laws in Minnesota. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a North St. Paul Attorney Help?

The laws in Minnesota place many unique demands on parties seeking to purchase businesses. An attorney in North St. Paul, Minnesota 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.