Buying a Business in North Carolina
Buying a business can be a worthwhile investment, but whether it is purchased by an individual or another company, the transaction is complicated.
Specific regulations concerning mergers, acquisitions, negotiations or securities exchanges may be implicated when you buy a business. These areas are all governed by Federal and North Carolina law.
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 acquires all assets and the customer base of the business, plus it also assumed the company's debts. 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. Through due diligence, federal and North Carolina guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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. There are specific laws in North Carolina that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.
How Can a Cary Attorney Help?
There are unique requirements in North Carolina that a party purchasing a business must fulfill. In Cary, an attorney knowledgeable in North Carolina law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.