How to Buy Out Another Company

 

How to Buy Out Another Company

At Blackstone Solicitors, our team can assist with company acquisitions and mergers of any size. We possess the necessary skills to help you through the process and can assist wherever you are based.

Buying a business can be a great opportunity to strengthen your market position, diversify into new markets, and speed up growth. However, it can also be a high-risk move, with a large financial investment into a company that may not be as profitable as it first appears.

You will need to put time and effort into finding a business that is right for you, whilst understanding the costs involved in buying an existing business.

The key to success is to find out as much as you can about the business you are buying, protect yourself against risks, and convince the vendor to sell it to you for a good price.

Acquiring a company is a major process and requires substantial legal expertise in many fields.

Our solicitors offer practical advice, working closely with you to plan your offer, establish valuation, and help you throughout the process to achieve your objectives.

Free Initial Telephone Discussion

Contact us today and we can talk you through our services and how we can help you. Simply call us on 0161 929 0121 or complete our online enquiry form and a member of the team will give you a call back as soon as possible.

Shares or Assets?

There are two methods of acquiring a business. One is to buy shares of the company that owns the assets. The other is to buy the assets which make up the business.

The two are fundamentally different. If shares in a company are purchased, all its assets, liabilities, and obligations are acquired (even those that the buyer does not know about).

If assets are purchased, only the assets (and liabilities) which the buyer agrees to obtain, and which are identified are acquired.

An asset purchase is often more complex than a share purchase due to the need to transfer each of the separate assets constituting the business. There is, however, a greater amount of flexibility in an asset purchase.

The other key commercial difference between the two transactions is in the nature of what the buyer acquires.

As well as commercial considerations, there are important tax implications when structuring an acquisition.

Due Diligence

Once an offer has accepted a period is allowed for you to access business books and records. This is known as due diligence where a buyer should gather as much information as possible to understand what they are taking on.

This should give you a realistic picture of how the business is performing, and how it is likely to perform in the future.

To discuss the stages of buying a company out including the legal, financial, and commercial due diligence you should be doing, you can contact us below.

You will also need to consider contractual warranties and what price you are willing to pay for the business. These are complex matters and it’s wise to speak to a solicitor in the first instance.

How We Can Help

We understand that buying out a business can be stressful. Using our experience and wealth of knowledge, we are able to offer expert advice.

We are committed to providing a first-class service and helping guide you through the process.

We are able to clearly explain the legal issues and provide open, honest, and professional advice.

How to Contact our Corporate Solicitors

To speak to our Corporate solicitors, simply call us on 0161 929 0121, or allow a member of the team to get back to you by filling in our online contact form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

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