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.

Purchasing a business occasionally involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Pennsylvania and Federal law.

What Parts of the Business Am I Buying?

A purchaser of a business in Northampton gains a right called "control", which is the right to direct the business operations as they see fit. Control involves ownership of the business assets and customers, along with the company's debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "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 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. There are particular 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 Northampton Attorney Help?

There are unique requirements in Pennsylvania that a party purchasing a business must fulfill. In Northampton, 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.