| Commentary

2.2 Asset purchase

| Commentary

2.2 Asset purchase

A buyer will require an asset sale in circumstances where due diligence has unearthed problems within the target company—under an asset sale no liabilities will transfer. Furthermore, the seller will not be required to give extensive warranties and indemnities and, as tax liabilities will remain with the target company, the transaction will not involve a tax deed. Also, financial services legislation should have less impact on the transactions, in particular the provisions in the Financial Services and Markets Act 2000 Section 21 on financial promotions, and in the Financial Services Act 2012 Sections 89 to 95 on

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