Buying a Business in Texas

Buying a Business in Texas

Purchasing 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 Texas laws concerning mergers, acquisitions, negotiations and securities exchange that may impact the purchase of a business.

What Parts of the Business Am I Buying?

Purchasing a business in Alpine 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. 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 Texas 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?

How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business might add to the price as well. The procedure for how the right of control can be transferred or modified is defined by particular laws in Texas. Procedures may make buying a business more or less expensive than simply the market value of its assets.

How Can a Alpine Attorney Help?

The laws in Texas place many unique demands on parties seeking to purchase businesses. An attorney in Alpine, Texas can inform you of the particularities of your investment as it relates to local law, as well as advise you of the least costly route to acquiring control.