Buying a Business in North Carolina
Purchasing a business can be a worthwhile investment, but whether it is purchased by an individual or another company, the transaction is complicated.
Purchasing a business occasionally involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by North Carolina and Federal law.
What Parts of the Business Am I Buying?
When someone purchases a business in Valdese, 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. Accordingly, the party purchasing a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. In the process of due diligence, Federal and North Carolina 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 North Carolina. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Valdese Attorney Help?
In North Carolina, the law poses requirements for a party purchasing a business to fulfill. An attorney experienced in North Carolina law practicing in Valdese can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.