Share purchases & buybacks

In contrast to an Asset Purchase Acquisition, a Share Purchase is more onerous for a purchaser and advantageous to a seller. When acquiring a business by share purchase, the purchaser buys the entire share capital of the target and takes on the target company lock stock and barrel. This includes all liabilities of the target company and in particular the tax history. The purchaser’s legal protection is found in the warranties and indemnities that make up the main part of the share purchase agreement known as the SPA.

In terms of taxation, a seller may benefit from certain tax reliefs when the deal is structured as a share purchase. Our commercial team work with your professional advisers in order to maximise your tax position on acquisition.

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What you should know about due diligence

Grant McCall, Director and Commercial Corporate solicitor at AMD Solicitors, outlines the importance of conducting due diligence on a target business when considering whether to invest or buy shares in the business.