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Purchase a Business in the UK

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  • 14-05-2007 12:15pm
    #1
    Vas_Guy
    Closed Accounts Posts: 436 ✭✭


    I'm interested in purchasing a business in the UK. Its registered as a limited company.

    Could anybody tell me what are the necessary steps to take in purchasing, also do I hire a solicitor in the UK or use my own in Ireland.


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    #2
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    There are a bunch of ways you could do it. You could buy all the assets or you could buy all the shares. A lot depends on the tax setup of the guy who is selling the firm.

    Personally I would be inclined to use a UK solicitor who has some sort of experience in M+A. This may be the correct thing to do legally speaking but I'm not certain. But if you are really comfortable with your existing solicitor it might make sense to have him involved.

    You and the vendor may also need accounting and tax advice.


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    #3
    Vas_Guy
    Closed Accounts Posts: 436 ✭✭Vas_Guy


    What he's selling is all the assets, everything. Its a small business which will cost me under E70,000 to purchase.

    Should I look for a personal loan or a business loan, the business loan will take longer and require more paper work whereas the personal loan will be quicker and as the business is focused around 1 piece of equipment in theory i'm purchasing that and the business comes free with it, if i wanted i could just move it back to ireland and set up here.


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    #4
    misterq
    Closed Accounts Posts: 382 ✭✭misterq


    As mentioned before, a UK solicitor would be the most suitable. You need someone with a good understanding of UK business and tax law.

    I don't know if there is a UK equivalent of boards.ie, but if there is, that might be the place to go to get recommendations on a good solicitor for this type of thing.


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    #5
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    I know you are buying everything, but the question is how you structure the sale. Buying all the shares in the company is supposedly the same as buying all the assets. However, there are subtle differences that can matter for tax and other legal stuff.

    This stuff can get really complicated. Obviously you need something pretty simple and straightforward.

    Do you know the book value of the asset? Is it the same as what you are paying?

    Will the guy you are buying off sign some sort of non-compete agreement? Will there be some sort of earn-out? Is there a warranty/service agreement on the asset?

    As for financing it, I guess the big question is whether you are going to guarantee the loan yourself, and what interest rate you are paying. It is important that you are in a position to set the interest off against tax.

    Really, you should be straightfrward with the bank about what you are going to do with the money. I don't really know about that.

    a.


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