Buying a Business in Oregon
Purchasing a business can yield great profits in the future. However, individuals and companies seeking to buy businesses should be aware of the complications of the transaction.
Particular regulations concerning mergers, acquisitions, negotiations or securities exchanges may be implicated when you buy a business. These areas are all governed by Federal and Oregon law.
What Parts of the Business Am I Buying?
If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party gains all assets and the customer base of the business, plus it also assumed the company's debts. 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 acquires this understanding. Through due diligence, federal and Oregon guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. However, obedience to the process of due diligence leads to a better informed decision about purchasing the business. And afterwards, it may also help the ownership transfer to go more smoothly.
How Much Will the Business Cost?
Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. The procedure for how the right of control can be transferred or modified is defined by particular laws in Oregon. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a West Linn Attorney Help?
There are unique requirements in Oregon that a party purchasing a business must fulfill. In West Linn, an attorney experienced in Oregon law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.