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 Totowa, 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. In the process of due diligence, Federal and New Jersey guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. 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?
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. The process for how the right of control can be transferred or modified is defined by specific laws in New Jersey. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Totowa 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 Totowa can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.