What is a Purchase & Sale Agreement?
A Purchase & Sale Agreement is an agreement on the purchase and sale of a business. There are two different ways of purchasing and selling a business. One method is purchasing assets of the business and the other method is purchasing the shares of the business. Under the asset purchase arrangement, a buyer may or may not be purchasing the entire business as the buyer can choose assets and liabilities of the business that the buyer wishes to acquire. On the other hand, under the share purchase arrangement, the buyer will have to purchase the entire assets of the business along with all the liabilities of the business as the buyer is purchasing the company that carries on the business. Whatever method you choose, we can draft a Purchase & Sale Agreement that suits your needs.
What are the Advantages of Purchasing Assets of a Business?
A buyer of the business would generally prefer purchasing assets of a business as the buyer can choose assets and liabilities of the business the buyer wishes to acquire. Further, purchasing assets of a business may be favourable to the buyer from a tax perspective as the buyer can utilize the increased cost of the acquired assets to reduce its taxable income.
What are the Advantages of Purchasing Shares of a Business?
The seller of a business may prefer to sell the shares of the business as it may be possible to utilize the capital gains exemption that is available on the disposition of qualified small business corporation shares. Further, purchasing the shares of a business can be much simpler than purchasing the assets of the business.
Which Method Should I Choose?
Even though purchasing assets of a business may generally be favourable to the buyer and selling the shares be generally favourable to the seller, each case is unique and a thorough analysis of the transaction is required in order to consider all the relevant factors. Therefore, seeking the advice of a knowledgeable business lawyer, such as M.J. O’Nions Lawyers & Mediators, prior to selling or buying a business is crucial to the success of your transaction.
What is the Cost of Buying or Selling a Business?
The cost of buying or selling a business depends on the complexity of the transaction, please email or telephone us to discuss your situation so that we can provide an accurate quote for our services.
Why Use M.J. O’Nions Lawyers & Mediators for Buying or Selling a Business?
The purchase and sale of a business requires careful planning and strategy. We have over 17 years of experience in advising B.C. businesses and we have expertise in drafting all necessary contracts for the Purchase & Sale of a business. We will do this in a cost effective manner while providing high quality professional service to you so you can focus on managing your business.
How do I start the process of Buying or Selling a Business?
You can start the process by filling out our contact form and a Vancouver business lawyer will contact you within 24 hours or simply give us a call at 604-449-7779. We will be happy to assist you in your transaction.