Buying a Business in Virginia

The investing in a business can be the fastest route to a great return. Individuals and companies hoping to buy businesses should be aware of the complications that can arise, however.

Specific regulations concerning mergers, acquisitions, negotiations or securities exchanges may be implicated when you buy a business. These areas are all governed by Federal and Virginia law.

What Parts of the Business Am I Buying?

A buyer of a business in Smithfield 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 balance the positives and negatives, the party buying a business must get a complete picture of the financial position of the business. Through a process called "due diligence", a buyer gains this understanding. The process of due diligence uses Federal and Virginia guidelines to protect both parties. If these guidelines are not followed, a party may be found in breach of a legal duty. 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?

How much the right of control will cost depends on how much ownership stake is required. The value of the property of the business may add to the price as well. There are specific laws in Virginia 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 Smithfield Attorney Help?

There are unique requirements in Virginia that a party purchasing a business must fulfill. In Smithfield, an attorney knowledgeable in Virginia law can inform you about the peculiarities of your investment and outline the cheapest way for you to purchase control.