In a case which is the first of its kind and has implications for companies of all sizes, a small interior design company has been convicted under ‘failure to prevent bribery’ legislation. The court was told that a former director of...
If you are thinking of selling or buying a business an option available would be to conduct this through an asset sale.
When commencing an asset sale the buyer acquires the agreed areas of a business which is sometimes referred to as the target business. For example, a larger corporation could opt to only buy the operations of a business, without the purchase of the company as a whole or the individual shares. The sale can include the target’s contracts and good will or a defined portion of each.
It is a relatively flexible approach for buyers, allowing them to select particular assets instead of acquiring the business as a whole via the share sale route. For the buyer, this type of sale is sometimes seen as less risky, making the contract and transaction simpler.