| Commentary

2.1 Share purchase

| Commentary

2 Acquisitions

2.1 Share purchase

Share purchase may have advantages over asset purchase from both the seller’s and the buyer’s point of view but much depends on the situation of the target company and its business. For the seller, selling his shares provides him with a clean break from the business although the quid pro quo for obtaining his freedom is the need to give extensive warranties and indemnities to the buyer, and he may also have to extricate himself from certain ongoing guarantees of the company’s obligations. Further, there is less likelihood of any employment claims arising from the sale

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