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?
The purchase of a business in Dickinson is actually the buying 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 gained through a process known as "due diligence". Federal and North Dakota guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. 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?
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 process for how the right of control can be transferred or modified is defined by specific laws in North Dakota. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Dickinson Attorney Help?
The laws in North Dakota place many unique demands on parties seeking to purchase businesses. An attorney in Dickinson, North Dakota 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.