Buying a Business in South Dakota

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.

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 purchases a business in Yankton, 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 purchasing 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. The process of due diligence uses Federal and South Dakota guidelines to protect both parties. If these guidelines are not followed, a party might be found in breach of a legal duty. Following the procedure of due diligence faithfully, however, leads to a better informed decision about the purchase of the business. It can also help the ownership transfer to go more smoothly.

How Much Will the Business Cost?

Control of a business is sold for an amount that is necessary for a party to acquire an ownership stake. The value of the business property and the type of business factor in to determine the exact price. The procedure for how the right of control can be transferred or modified is defined by particular 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 Yankton Attorney Help?

South Dakota poses unique demands that a party purchasing a business must meet. Lawyers practicing in Yankton are experienced in South Dakota law, and can find the cheapest way for you to purchase control of a business.