Buying a Business in Pennsylvania

Purchasing a business can yield great profits in the future. However, individuals and companies hoping 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. A complete picture of the financial position of the business is important for the purchaser to make his decision. This picture is acquired 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. Following the process of due diligence dutifully is the best way to inform oneself for whether to purchase a business. Also if the business is eventually bought, transfers of ownership happen much more easily once the process is followed.

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 might add to the price as well. 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 Butler Attorney Help?

There are unique requirements in Pennsylvania that a party purchasing a business must fulfill. In Butler, an attorney experienced in Pennsylvania law can inform you about the peculiarities of your investment and outline the cheapest way for you to purchase control.