Buying a Business in New Mexico
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 Mexico 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?
Buying a business in Grants is gaining the right to direct business operations. When a party directs operations as they see fit, their right is called ?control? of the business. Like ownership, control includes the right to all the property of the business as well as the assumption of the 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". The process of due diligence uses Federal and New Mexico guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. Following the process of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business may add to the price as well. The process for how the right of control can be transferred or modified is defined by specific laws in New Mexico. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Grants Attorney Help?
New Mexico poses unique demands that a party purchasing a business must meet. Attorneys practicing in Grants are knowledgeable in New Mexico law, and can find the cheapest way for you to purchase control of a business.