Buying a Business in Pennsylvania
Purchasing a business can yield great profits in the future. However, individuals and companies looking 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 Pennsylvania 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. In the process of due diligence, Federal and Pennsylvania guidelines are used to inform both parties. If there is a violation 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 purchase 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 determined somewhat by the value of the business property and the type of business. The procedure for how the right of control can be transferred or modified is defined by particular laws in Pennsylvania. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Altoona Attorney Help?
The laws in Pennsylvania place many unique demands on parties seeking to purchase businesses. An attorney in Altoona, Pennsylvania can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.