Buying a Business in Rhode Island

Buying a business can yield great profits in the future. However, individuals and companies looking to buy businesses should be aware of the complications of the transaction.

Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by Rhode Island and Federal 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". Federal and Rhode Island guidelines are used in the process of due diligence, and not following these guidelines can lead to legal consequences. Following the process of due diligence dutifully is the best way to inform oneself for whether to buy 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 may add to the price as well. There are specific laws in Rhode Island 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 Exeter Attorney Help?

There are unique requirements in Rhode Island that a party purchasing a business must fulfill. In Exeter, an attorney knowledgeable in Rhode Island law can inform you about the peculiarities of your investment and outline the cheapest way for you to gain control.