Buying or selling a business is a complex task and it requires preparation of the appropriate documents, conducting necessary due diligence, and understanding the potential tax consequences.
You should work with a Sydney business lawyer when faced with such a potential transaction.
Acquiring a business typically involves either an asset purchase or an equity-based purchase. With an asset purchase, the buyer purchases only the seller’s assets instead of acquiring control of the entity as a whole. An asset purchase will generally be more beneficial to the buyer than the seller from a tax perspective.
In an equity-based purchase, the buyer takes full ownership of the stock (corporation), the ownership interests (limited liability company), or the partnership interests (partnership) in the company, generally resulting in a more stable change in ownership and management and generally resulting in more beneficial tax consequences to the seller.
ABP Legal competently and professionally assists clients through the process of buying or selling a business.
Contact us and let us know how a Sydney business lawyer can help you to buy or sell a business.