Buying a Business in Pennsylvania

Buying 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.

Specific 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 acquires all assets and the customer base of the business, plus it also assumed the company's debts. A complete picture of the financial position of the business is important for the buyer to make his decision. This picture is gained through a process called "due diligence". Through due diligence, federal and Pennsylvania guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is purchased.

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. There are specific laws in Pennsylvania that dictate procedure for how the right of control of a company can be transferred and modified, and these procedures may make buying the business cheaper or more expensive, depending on a variety of factors.

How Can a Bristol Attorney Help?

In Pennsylvania, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Pennsylvania law practicing in Bristol can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.