Normally, buying a business in Great Britain requires concluding a purchase & sale agreement. Whether a deal involving the purchase of assets or companies in Great Britain can go through is pivotals on how many parties participate in the transaction, how complex a transaction is & whether negotiations on a bilateral basis will have to be conducted.
Buying a Company in Great Britain
Under British legislation, purchasers get to choose the liabilities & assets they want to purchase.
Purchasing companies in Great Britain is governed by specific regulations, under which UK financial regulators can investigate any transactions.
As far as assets & liabilities are concerned, transfering obligations from sellers to purchasers involves securing counterparties’ consent. Assigning benefits can also require getting a counterparty’s consent.
If some assets require registration as per English law, then transferring ownership can only be done after updating the information in a respective register.
If some stocks have to be transferred to a British company, their new owner’s name won’t be included in the list of the company’s owners unless they pay stamp duty in full.
Purchasing a Company in Great Britain: Documentation
Acquiring shares, companies or assets in Great Britain requires signing the following documentation:
- an agreement on confidentiality
- a purchase & sale contract
- a disclosure letter
- an agreement on transitional service
- documents authorizing transferring or registering of assets’ ownership
Performing DD of a British Company
The DD procedure in England confirms:
- a company’s ownership
- structure
- financial obligations
- ownership of IT, real estate & assets
- law enforcement & litigation
Performing DD in Great Britain helps speed up the process, reduce costs for a target company & eliminate difficulties connected with the transaction. Normally, purchasers & their creditors make use of reports on the expertise of the seller; however, they can also seek legal advice & conduct a comprehensive review of the company in Great Britain.
What Information Can Be Obtained Online
Companies in Great Britain must provide any information about themselves which is available on the Internet to a special register.
Info on registered IP, including trademarks & patents, can be obtained from the IP Office in Great Britain. Detailed information on any permits held by companies providing financial services can be gotten online by searching the registry of relevant financial conduct authorities.
Considering buying a company in Great Britain? Need legal advice on concluding a sale & purchase agreement in England? Contact IQ Decision UK & get all your legal needs fulfilled.
