Buying a Business in Utah
Purchasing 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 particular laws in Utah and the US that concern negotiations, mergers, acquisitions and securities exchanges. You may need to consider how these laws impact your situation before you buy a business.
What Parts of the Business Am I Buying?
A purchaser of a business in Holladay gains a right called "control", which is the right to direct the business operations as they see fit. Control involves ownership of the business assets and customers, along with the company's debts. To make his decision, a purchaser 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 Utah guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. 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 Utah. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Holladay Attorney Help?
Utah poses unique demands that a party purchasing a business must meet. Lawyers practicing in Holladay are experienced in Utah law, and can find the cheapest way for you to purchase control of a business.