The parties involved in a sale or purchase of a business will need to begin the transaction by deciding whether or not it will be the shares or assets of the business that are sold. Both options present a range of tax issues to consider as well as a number of advantages and disadvantages to the seller and purchaser.
Once this has been agreed, the basic structure of a business sale/purchase will be as follows:
- Heads of Terms/Agreement – this preliminary document sets out the basic terms of the sale and purchase as agreed by the parties
- Due Diligence – the solicitor acting for the purchaser will need to carry out a number of checks and searches into the business being purchased. The aim of this exercise is to provided the purchaser with further information on the “health” of the business and on any unwanted liabilities that may be acquired by virtue of purchasing the assets/shares
- Share/Asset Sale and Purchase Agreement – this is the main governing document setting out the exact terms of the sale and purchase and will be signed by the parties at completion.
Parties involved in a Business Sale/Purchase will realise that, like selling/purchasing a house, it can be a stressful process. Our Corporate and Commercial team will be on hand to take you through the process as smoothly as possibly, mitigating any stresses along the way.
Please contact Andrew Tzialli on 020 8422 5678 or by email at Andrew.Tzialli@haroldbenjamin.com for further information.
