When an entrepreneur decides to sell his business concern, he would definitely need sound advice on tax and other implications such transfers imply. We offer advice both on relative procedural issues as well as on the due diligence requirements of the transferees.
An important issue to consider when effecting transfers is the importance of contacting the bankers of the entity and advising them of the changes in ownership. Again, in this exercise due diligence procedures are of the essence. Part of our expertise is contacting and liaising with the banks and submitting to them the necessary documentation in order to satisfy their due diligence requirements.
A transfer of a business concern can occur in a number of situations, like: –
When the assets of a business concern are transferred to another person, and the existing business ceases to trade;
When the existing owner dies or retires from business, and the business assets are taken over by another person;
When only part of the business concern is transferred;
When the assets are transferred from one person to a new legal entity-for example a sole proprietor may decide to register a company and transfer his business therein.