"A CLIENT called me the other day to tell me he had agreed to buy a business and wanted a quick deal to make the most of the summer season trade.
He told me he had given my name to the seller and could soon expect to receive the contract papers from the seller’s solicitors.
I called the client just as soon as the papers arrived to let him know the seller seemed to think the deal was not for the sale of the business, but a sale of the company which was running the business.
I explained while it was common for companies to be bought and sold for a price which reflects the value of the business conducted by the company, the legal implications were significant.
The buyer of the shares in a company takes over on the basis all historic liabilities continue to apply but the purchaser of the business and assets of a company does not inherit responsibility for past events."
Read more at:
OWEN HILL: Buying a business...or the company? | Torquay Herald Express:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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