Liabilities
When buying a business or a company it is important to consider any liabilities associated with the company, and what you, as successor, will be liable for after the transaction is complete. Thorough due diligence conducted by an experienced solicitor may highlight liabilities you were unaware of, which could seriously affect the appeal of such an acquisition.
In most cases, the sale of a business and its assets excludes the debts, whereas a company sale (the sale of shares) incorporates the debts with the purchase. However, there are cases when this may differ.
Obviously, it is of paramount importance to gain an understanding of the financial liabilities involved before making a purchase, which is why it’s essential to work with a solicitor experienced in the buying and selling of businesses and companies.
How will Business Lawyers Direct help?
Our solicitors make enquiries to discover:
- What is owed by the business (including tax, hire purchase and credit agreements)?
- Who does the business owe that money to (e.g. a leasing company)?
- When do the payments have to be made and for how long?
- Which items of equipment are covered by those payments?
- Who is to make those payments?
- What happens if those payments aren’t made?
Contact Business Lawyers Direct
Contact our expert solicitors today to discuss your requirements in greater depth. Call or use our online enquiry form.
Any reference to partner in relation to a firm means a director of the Company or an employee or consultant of equivalent standing and qualification.
