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Share Sale Transactions

Over recent months, Alison Barr who heads up our Corporate Commercial Department has been involved with a number of share sale transactions on behalf of clients.

Although the sales involve the usual corporate issues: due diligence, negotiation of the share purchase agreement, tax covenants and disclosure – the reasons driving each of the share sales are different.

In one case, a Suffolk-based family company, which had been a long term client of the firm, approached Alison because the owners wanted to retire. However, they were willing to stay on for a period to ensure a smooth handover. 

The entire share capital was bought by a much larger company in the same sector.

In another case a company based in Hertford and London, which was also a long-term client, came to the conclusion that in order to grow further, they needed to merge with a larger organisation. The directors have agreed to continue working with the new owners and now have the security of working within a much larger group of companies.

A third company sale was slightly different in that the company existed solely to own property and the reason for the share sale was to dispose of the property in the most tax efficient way.

“We have seen an increase in both share sales and share purchases over the last 6-9 months and the market shows no sign of slowing,” said Alison.

 

For further information contact Alison Barr.

The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.