Buying or selling a business is usually done either by a share sale or an asset sale.
What is a share sale?
A share sale is where the shareholders sell their shares in a company to a buyer. The company is not itself affected directly by the sale. All that happens is that the ownership changes. People are employed by the same company. The bank account remains in place. The contracts remain in place.
What is an asset sale?
In an asset sale the assets of the business are transferred. This is usually from one company to another company. Assets include employees, goodwill, buildings, machinery. In an asset sale the business is directly affected.
There may be a few questions…
It is usual for a buyer to ask a lot of questions about the company or business it is interested in buying. A seller will not normally answer detailed questions until a price has been agreed. Both an asset sale and share sale are “subject to contract”. This means either party are free to walk away from the deal unless and until the share or asset purchase agreement are signed.
We have an experienced and approachable team.
We have a large team for the size of the firm, and therefore have the capacity to progress matters at the appropriate speed. We can advise buyers and sellers. We also have a proven network of specialist advisers who can advise on areas such as construction law, tax, employment law and Intellectual Property.
The earlier you involve us in your decision to buy or sell, the more we can help.
It is generally hard work and takes a long time to build a successful resilient business. The earlier you involve us in your decision to buy or sell, the more we can help.
For more details on how we can support you or your business, contact our Corporate and Commercial Law team today.
Have you ever wanted to just ask a lawyer if they can help you, without worrying about what it may cost to contact them? If so, call HSR Law Solicitors and together we can work out what your next steps might be… in confidence, at no cost and with no obligation. Complete our simple form with your name and contact number and we will call you back to discuss how we can help.
Alternatively, contact Andrew, Jonathan, Clair, Kingsley or Sharnika: our Corporate and Commercial Law specialists.
