Buying a Business in Pennsylvania

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 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". The process of due diligence uses Federal and Pennsylvania guidelines to protect both parties. If these guidelines are not followed, a party might be found in breach of a legal duty. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.

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 Conshohocken Attorney Help?

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