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 Valley City 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. A complete picture of the financial position of the business is important for the buyer to make his decision. This picture is gained through a process called "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, due diligence will lead to a better informed decision concerning whether you want to buy 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 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 Valley City Attorney Help?
North Dakota poses unique demands that a party purchasing a business must meet. Attorneys practicing in Valley City are knowledgeable in North Dakota law, and can find the cheapest way for you to purchase control of a business.