Buying a Business in New Jersey

Buying a business can be a worthwhile investment, but whether it is purchased by an individual or another company, the transaction is complicated.

Federal and New Jersey law concerning mergers, acquisitions, negotiations and securities exchange sometimes come into play during the purchase of a business

What Parts of the Business Am I Buying?

When someone buys a business in Princeton, 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. 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 New Jersey guidelines define the process of due diligence, and sometimes legal consequences arise when these procedures are not followed properly. 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. There are specific laws in New Jersey 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 Princeton Attorney Help?

There are unique requirements in New Jersey that a party purchasing a business must fulfill. In Princeton, an attorney knowledgeable in New Jersey law can inform you about the peculiarities of your investment and outline the cheapest way for you to purchase control.