Buying a Business in South Carolina
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.
There are Federal and South Carolina laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.
What Parts of the Business Am I Buying?
When someone buys a business in Sumter, they are actually gaining the right to direct business operations as they see fit. This right is called ?control? of the business. Control entails ownership of all the assets and customer base of the business, but it also includes the responsibility for that company?s debts and liabilities. To balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. Federal and South Carolina guidelines define the process of due diligence, and sometimes legal consequences arise when these procedures are not followed properly. However, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may also help the ownership transfer to go more smoothly.
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. There are specific laws in South Carolina 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 Sumter Attorney Help?
In South Carolina, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in South Carolina law practicing in Sumter can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.