Buying a Business in Texas

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 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?

If a party wants to direct business operations, the best way is to acquire a right called "control". With control of a business, the party gains all assets and the customer base of the business, plus it also assumed the company's debts. In order to protect the interests of all parties, there must be an accurate and complete picture of the financial position of the business. This picture of the company's financials is acquired through a process known as "due diligence". In the process of due diligence, Federal and Texas guidelines are used to inform both parties. If there is a violation 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 bought.

How Much Will the Business Cost?

How much a business will cost varies on the type of business, how much ownership stake you need to assert control, and the value of the business property. 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 Big Spring Attorney Help?

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