Buying a Business in West Virginia
The investing in a business can be the quickest route to a great return. Individuals and companies looking to buy businesses should be aware of the complications that can arise, however.
Buying a business sometimes involves laws concerning mergers, acquisitions, negotiations or securities exchanges. These fields are governed by West Virginia and Federal law.
What Parts of the Business Am I Buying?
A buyer of a business in Kanawha County 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. Accordingly, the party buying 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. Through due diligence, federal and West Virginia guidelines are used to inform both parties, and there may be legal consequences for not following these guidelines properly. However, obedience to the process of due diligence leads to a better informed decision about buying the business. And afterwards, it may 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 process for how the right of control can be transferred or modified is defined by specific laws in West Virginia. Procedures may make buying a business more or less expensive than simply the market value of its assets.
How Can a Kanawha County Attorney Help?
In West Virginia, the law poses requirements for a party purchasing a business to fulfill. An attorney knowledgeable in West Virginia law practicing in Kanawha County can help you comply with these laws and acquire control of the business you want to buy as cheaply as possible.