Buying a Business in New York
Buying a business can be a worthwhile investment, but whether it is purchased by an individual or another company, the transaction is complicated.
There are specific laws in New York and the US that concern negotiations, mergers, acquisitions and securities exchanges. You may need to consider how these laws impact your situation before you buy a business.
What Parts of the Business Am I Buying?
When someone buys a business in Mineola, 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. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. Federal and New York guidelines define the process of due diligence, and sometimes legal consequences arise when these procedures are not followed properly. 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 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. The process for how the right of control can be transferred or modified is defined by specific laws in New York. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Mineola Attorney Help?
In New York, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in New York law practicing in Mineola can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.