Business Acquisitions and Sales

Acquisitions

There are two different ways of acquiring a business.   Firstly, you may be able to purchase the assets that comprise the business, such as machinery, property, stock and goodwill, or, secondly, where the business is owned by a company you could buy its shares.

Whichever method is used, you need to make a thorough investigation of the business you are buying so you know exactly what you are getting for your money. Raworths can assist in this process.  We work alongside your other professional advisers, such as your accountants, pensions experts and insurers etc..

The issues of business structure and finance are also fundamental parts of business acquisitions and should be discussed at an early stage. It is vital to plan, not just how you can make the acquisition, but also what you envisage for the business once you have bought it. This includes your "exit", that is to say when you eventually want to sell the business or pass it onto your successors. All these factors can influence the acquisition process.

Sales

When selling your business you need to consider the same issues as set out above. Are you selling assets or shares? Do you want to sell everything, or are there parts you want to keep?  What are the tax consequences of the transaction, and can these be improved by structuring it in a different way?

It is never too early to start planning for a sale of your business. Having an idea of what, or if you want to sell, and who to, will help you structure your business accordingly. A lack of planning can reduce the potential sale price and cause a variety of tax problems.

The sale or handing over of a business will have a considerable impact on your personal tax position and our Trusts & Probate team will be happy to advise, in conjunction with your accountants, on how best to deal with this.

See also:
Business structure
Funding
Trusts and tax planning

If you need any further information please contact Simon Morris or Mike Sharp