Buying a Business in Pennsylvania

Buying 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.

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". The process of due diligence uses Federal and Pennsylvania guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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 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. The process for how the right of control can be transferred or modified is defined by specific laws in Pennsylvania. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Clifton Heights Attorney Help?

The laws in Pennsylvania place many unique demands on parties seeking to purchase businesses. An attorney in Clifton Heights, 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.