Buying a Business in Tennessee
Buying 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 Tennessee laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.
What Parts of the Business Am I Buying?
Buying a business in Knox County is gaining the right to direct business operations. When a party directs operations as they see fit, their right is called ?control? of the business. Like ownership, control includes the right to all the property of the business as well as the assumption of the business debts. To make his decision, a buyer will want a complete picture of the financial position of the business. Through a process called "due diligence", a company's financials become clear. Through due diligence, federal and Tennessee guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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?
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 Tennessee 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 Knox County Attorney Help?
Tennessee poses unique demands that a party purchasing a business must meet. Attorneys practicing in Knox County are knowledgeable in Tennessee law, and can find the cheapest way for you to purchase control of a business.