When
buying or selling a business, a buyer will need to consider how you will buy
that business; there are two methods to choose from.
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| Nath Solicitors |
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A buyer can either purchase the shares of a company or the
assets of a company. Whichever method is decided upon, it is important to
bear in mind that it is rarely straightforward and a buyer will need to weigh
the pros and cons of each one depending upon the buyer’s objectives.
·
Nath Solicitors- solicitors indulwich
are experienced in corporate matters and can be
very helpful for you at this stage of transaction
·
Where a buyer is purchasing shares, the buyer also acquires the
company’s liabilities and obligations. Due to the nature of the transaction
matters can get complex and the buyer often ends up seeking warranty protection
on a whole host of matters depending on the nature of the business being
brought; some common areas for warranties include tax, contracts the company
has entered and litigation and employees.
·
Alternatively, where assets are purchased and a sale agreement
is entered into, the buyer only purchases those assets that have been set out
in the agreement along with any liability attached only to those assets.
·
The assets will need to be transferred separately by the seller
and he will need the cooperation of third parties who may have to consent to
any contract assignments; these may be third parties such as banks or customer
contracts.
·
When deciding which method to opt for, there are many other
considerations including financial, legal and tax considerations as well as
mere preference. Generally, sellers have a tendency to prefer the tax
advantages of share purchases, whereas buyers find asset purchases more
attractive from a tax standpoint.Whichever method is chosen good legal advice
at the outset can be invaluable.
Nath
solicitors are experienced in these matters and can help guide you through the
transaction from start to finish.
.
Contact
Details:
Nath Solicitors Limited
59 Alleyn Road, Dulwich,
London,SE21 8AD
London,SE21 8AD
Tel: +44(0) 203 670 5540
Mob: +44
(0) 7545 813 894
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