Buying an existing business?

Before buying a business of your own, the first issue that you will have to consider is whether you should buy the assets or the shares of the business.  Select what you are looking for. 

Asset Purchase

In an asset purchase, the seller transfers target assets in a corporation or partnership but retains ownership of the shares or units of the entity. Generally, the buyer can choose which assets to purchase and which liabilities are being assumed.

Our business lawyers will make sure you are getting what you paid for. They will prepare/review the Purchase agreement to make sure you are getting what you paid for, ensure proper due diligence, ensure that you comply with all statutes that apply to the transaction, and prepare/review other legal documentation to position you for success.

Asset purchase

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Share Purchase

Share purchase

In a share purchase, all of the shares of a corporation or units in a partnership are transferred from the seller to the buyer.

As the buyer, you will be inheriting all the risks and prior and future liabilities of the corporation. Potential issues could include unforeseen environmental cleanup costs, tax liabilities, or pending lawsuits. 

 

To avoid buyer's remorse, our business lawyers can reduce or eliminate certain risks. They will prepare/review the Purchase agreement to make sure you are getting what you paid for, ensure proper due diligence, ensure that you comply with all statutes that apply to the transaction, and prepare/review other legal documentation to position you for success.

Not sure whether to purchase shares or assets?