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.
Buying a business sometimes 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 buys a business in Weddington, 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 buying 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 deviation from these guidelines, one party may be held legally accountable. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is purchased.
How Much Will the Business Cost?
The price of a business mostly depends on how much ownership stake is required for control. The value of the business property and the type of business are also important factors. The process for how the right of control can be transferred or modified is defined by specific 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 Weddington Attorney Help?
The laws in North Carolina place many unique demands on parties seeking to purchase businesses. An attorney in Weddington, North Carolina 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.