Asset Purchase Lawyer and Share Purchase Lawyer

Sale of a Business and Purchase of a Business

At SLC Law, our sale of a business lawyer assists with the transactional aspects of the purchase of a business or sale of a business. It is important to engage a business lawyer to assist with the purchase or sale of a business to deal with the legal and transactional complexities involved.

Acquisitions: Asset Sale or Share Sale?

There are two ways to sell a business. The first method is through the sale of all of a corporation's shares and the second method is through the sale of all of a corporation's assets. Our corporate lawyer advises shareholders on their rights when a business corporation is being sold. A purchaser and a vendor need to consider many different items when determining whether to proceed by asset purchase or share purchase. You should speak to your business lawyer to discuss whether an asset sale or share sale is best in your circumstances.

Letter of Intent or Memorandum of Understanding or Term Sheet?

Generally, a letter of intent, memorandum of understanding, term sheet, and other similar documents tend to outline the basic business terms of a transaction. However, each of the aforementioned documents do something different and may not be necessary in all transactions. It is best to speak to your business lawyer before you engage in the process of creating or signing the aforementioned documents to avoid adverse legal or adverse transactional consequences.

Initial Considerations

Buying or selling a business should not be a rushed process. Transactions take time and do not happen over night. When you involve your business lawyer from the onset of your desire to buy a business or sell your business, your transactional lawyer will guide you through various considerations, such as tax planning and consequences to privacy law considerations. It is important to involve your business lawyer early in the process.

Is Due Diligence Necessary?

Due diligence and investigations are an important step in the purchase of a business transaction, whether the transaction is a share purchase or asset purchase. Your business lawyer should discuss due diligence and its importance.

Documents Required in the Sale of a Business

The transactional documents which record the sale of a business consist of many different documents, including, but not limited to, the asset purchase agreement or share purchase agreement. The agreement of purchase and sale is not the only transaction document used to document the sale of a business. Your business lawyer will prepare the necessary documents to close the sale of a business transaction, which may include a share purchase agreement or asset purchase agreement, among other documents.

Asset Purchase Agreement vs Share Purchase Agreement

An asset purchase agreement is the purchase agreement used in an asset acquisition. Similarly, a share purchase agreement is the purchase agreement in a share acquisition. Asset purchase agreements and share purchase agreements are one step in the sale of a business transactional process. 

Does SLC Law Provide Services in Mississauga and Toronto?

SLC Law provides sale of a business services in Mississauga and Toronto, as well as throughout Ontario. Our business lawyer offers business law and corporate law services across the Greater Toronto Area, including Mississauga, Oakville, Brampton, Milton, Burlington, Guelph, Waterloo, Kitchener, Hamilton, Newmarket, and Vaughan. Contact our business lawyer and corporate lawyer today by telephone for a consultation. SLC Law offers reasonable rates and efficient legal services.