Buying and selling is a major part of the operations of most companies. In some cases, however, the selling may go beyond products or services, and owners may find that they need to sell a business entirely. This type of action could affect large or small companies, and the reasons for doing so can vary.
California residents may be interested in General Electric's latest move that involves selling one of its smaller businesses. The company sold its distributed power business to a private equity firm for $3.25 billion. This smaller business encompasses multiple brands and manufacturing plants in the United States and two other countries. The brands associated with the distributed power business had been purchased in 2003 and 2011 under GE's former CEO.
The business sale reportedly took place as GE works to address its considerable amount of outstanding debts. The current CEO hopes that by selling off smaller sections of the company the financial issues can be more readily addressed. Another sale that took place under this CEO involved the $11 billion transaction of selling GE Transportation, the company's former railroad division.
When the need to sell a business arises, it can be a complicated process. Company owners certainly want to make sure they make the right moves and obtain the best price and terms for the purchase of their businesses as possible. Because of the complex nature of such transactions, it may prove wise for California business owners facing such situations to discuss their selling options and protective strategies with their legal counsel.