Buying a Business in South Dakota
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.
There are Federal and South Dakota 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 Sturgis, 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. Accordingly, the party buying a business will want a complete picture of the financial position of the business. Through a process called "due diligence", the financials of the company are disclosed. In the process of due diligence, Federal and South Dakota guidelines are used to inform both parties. If there is a deviation from these guidelines, one party may be held legally accountable. However, the best informed decision about whether to buy the business can only be obtained through obedience to the due diligence process. Added benefits also include a smoother transition once the business is purchased.
How Much Will the Business Cost?
How much a business will cost depends on the type of business, how much ownership stake you need to assert control, and the value of the business property. The process for how the right of control can be transferred or modified is defined by specific laws in South Dakota. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Sturgis Attorney Help?
In South Dakota, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in South Dakota law practicing in Sturgis can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.