Buying a Business in North Dakota
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 Dakota and Federal law.
What Parts of the Business Am I Buying?
When someone buys a business in Bismarck, 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. The process of due diligence uses Federal and North Dakota guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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?
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. There are specific laws in North Dakota 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 Bismarck Attorney Help?
In North Dakota, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in North Dakota law practicing in Bismarck can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.