In spite of, or perhaps because of, the difficult economic times, many businesses are still actively looking to buy or sell company assets. Some companies are seeking to streamline their business while others are looking to expand. In such an economic climate it's more important than ever to take clear-headed, practical legal advice on commercial transactions.
Buying and selling business assets
Business can buy, sell or trade assets both real and intangible. Intangible assets include things like patents and other intellectual property. Tangible assets include plant and machinery. Normally the purchase of business assets is completed via an 'Asset Purchase Agreement'. Which specifies which assets are being transferred, the conditions of the sale/purchase and any warranties which are being given by the seller.
Obviously, this agreement must be tailored to the specifics of the transaction and take into account time scales, any contracts or leases which subsist in the assets and other legal concerns. Very often, there will be a process of negotiation between the buyer and the seller to settle on the terms of the agreement. There will almost certainly also be Capital Gains Tax implications involved in the sale of assets. Given the complex nature of asset sales and asset purchases, it's important to take timely legal advice.
As purely business lawyers, we understand the importance of timely advice, especially where asset sales and purchases are concerned. Often, time is of the essence and little time can be devoted to performing due diligence on the assets.
Valuation of assets
It's also important to have the assets correctly valued. The true value of an asset is what someone will pay for it, not its value on paper. As 100% commercial lawyers, we are focused on finding the right solution for our clients and their business. Our business law expertise means we can advise on all aspects of the sale or purchase of business assets and make sure the transaction proceeds as smoothly as possible.