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. To make his decision, a buyer will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. In the process of due diligence, Federal and Pennsylvania guidelines are used to inform both parties. If there is a deviation 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 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 East Stroudsburg Attorney Help?
In Pennsylvania, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in Pennsylvania law practicing in East Stroudsburg can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.