Ashfords Solicitors - Sale or Acquisition of Business and Assets

Sale or Acquisition of Business and Assets

You may structure the sale or purchase of a company as either a share transaction or an assets and goodwill transaction but if the business is a sole trader or partnership, you can only structure the deal as an asset sale or purchase.

An assets and goodwill purchase may be preferable to a buyer because the buyer can identify exactly what it is buying and can cherry pick those assets that the buyer wants and leave with the seller those liabilities that the buyer does not want. The buyer can therefore focus legal and accounting investigations in relation to those assets and / or goodwill that the buyer is purchasing.

Whether you decide to structure as a sale or purchase of shares or a sale or purchase of assets and goodwill, the ideal time to seek legal advice is at the outset of the negotiations, prior to agreeing principal terms. We can then advise you early-on about the potential pit-falls that you may encounter.