In contrast to an Asset Purchase Acquisition, a Share Purchase is more onerous for a purchaser and advantageous to a seller. When acquiring a business by share purchase, the purchaser buys the entire share capital of the target and takes on the target company lock stock and barrel. This includes all liabilities of the target company and in particular the tax history. The purchaser’s legal protection is found in the warranties and indemnities that make up the main part of the share purchase agreement known as the SPA.
In terms of taxation, a seller may benefit from certain tax reliefs when the deal is structured as a share purchase. Our commercial team work with your professional advisers in order to maximise your tax position on acquisition.
What our Clients say
Hollis Morgan has an excellent working relationship with AMD in both their probate and conveyancing teams and regularly refer them to our clients. Without fail we have had excellent feedback with clients especially commentating on the individual care and attention they have received and the prompt return of phone calls.18/12/2018
From IP and T&Cs to commercial property issues, Grant McCall and his commercial team have provided invaluable support and advice for our businesses. We also instructed Grant when we sold part of our business back in 2013. The multinational buyer meant this was a real David and Goliath situation for us and, with Grant on our side, we achieved a significantly higher payment than what we were seeking before his instruction. I have no hesitation in recommending AMD’s commercial team and we continue to use them to protect, plan and grow our businesses.15/01/2019
“Extremely easy to work with” – I instructed Grant McCall of the Commercial Team to help me ‘formalise’ a Partnership Agreement.
I corresponded both with him as well as a member of his team, and it was very straight forward. More than likely will use the Firm again. Firmly recommended.18/09/2018
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