Transfer of shares in the company

The sale of shares in a company that owns a business is another means of selling a business although it occurs far less frequently.

It involves a sale of the company “warts & all” to the buyer, meaning that the buyer acquires all of the company’s assets – including the business – and all of its liabilities.

This method of acquisition requires a buyer to be satisfied that the company is ‘clean’. In particular, the buyer must be satisfied with the following:

  • Any potential for customer or supplier disputes
  • Adverse taxation liability
  • Latent liabilities
  • Incomplete regulatory compliance
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Last updated: 27 November 2019