Buying/selling a business & due diligence

Plummer Parsons will support you throughout the process including providing you with a professional independent review of the business you wish to acquire. We will go through the deal with you and discuss your expectations and any assumptions you have. We will undertake a detailed review of the business and report to you to further enhance your understanding of the issues that may need to be addressed. You will be provided with our ‘plain English’ review of the business’ financial performance and our review and comment on any performance forecasts, and the assumptions upon which these are based. We will help you to identify any potential ‘skeletons in the closet’ and formulate a plan to deal with them in the most effective and efficient way.

Invariably the more a purchaser knows about exactly what is being acquired the better the results of the acquisition should be. The assurance which can be gained by the Plummer Parsons due diligence process will be invaluable to you. We can help ensure that you start your new project smoothly, swiftly and from the best possible place to achieve your goals.

For sellers, we can help you prepare your business for sale, providing suitable information to purchasers so that a deal can be reached swiftly. We will work with their team to ensure that they get the answers and information they need with the minimum of disruption to your business.

Buying a company

Purchase of another company's share capital requires careful consideration. Depending on the percentage, you could have a subsidiary or an investment acquisition. All taxation aspects of the transactions must be considered, not only corporation tax but also VAT and stamp duty land tax.

Asset Purchase

If you make an asset purchase, then the acquired company is absorbed into the existing company rather than being maintained as a separate unit. A number of issues affecting the taxation of the transaction will need to be considered.

Selling a Company

If assets are sold a chargeable gain may arise within this company.

If shares are sold it may be able to make use of the substantial shareholdings exemption.

For your ease we have listed below related articles on this topic.  Where applicable there is also a list of useful links on the left hand side.

If you would like to speak to someone please do not hesitate to contact us.