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 Secaucus, 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. Federal and New Jersey guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. 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 depends on the value of the ownership stake that is necessary to exert control, and this in turn is decided somewhat by the value of the business property and the type of business. 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 Secaucus Attorney Help?
In New Jersey, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in New Jersey law practicing in Secaucus can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.