Top Consideration When Acquiring a Company
Are you considering buying a business? In this video, I share the most critical legal considerations when buying the shares in a company.
Remember, if you're looking to buy a business, looking to buy the shares in a company, contact us. We're here to help.
VIDEO TRANSCRIPT
Ross Millen:
Hi. We've had a couple of people buying businesses recently, but rather than actually just buy the business, what they've been doing is buying the company that owns and operates the business. So they're basically buying all of the shares in a company.
Now, this will only work, of course, if the business that you want to buy is really the only asset of that company. But buying a company, buying all the shares in a company to get control, you really need a great set of warranties, because I liken this to changing drivers in a moving car, the business is operating suppliers, debtors, payments, leases, everything. You sort of take it over, but you take it over as it is. So you've really got to step into the driver's seat, and you've got to make sure that everything's fine, because you don't want to be three months, six months down the track and suddenly find there's some claim that is against the company you now own and operate that company, and you're responsible for the claim.
So when you're buying the shares in a company, you need a really good agreement and you need a great set of warranties, and Millens has got both. So we're able to help you. So remember, if you're thinking of buying a business, maybe there's the opportunity to actually buy the company that runs the business, and that could be a great advantage to you because you keep everything running in the same name. So remember, if you're looking to buy a business, looking to buy a company, contact us. We're here to help. Ross Millen from Millens.
