Share purchases—employment issues acting for the buyer
Share purchases—employment issues acting for the buyer

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Share purchases—employment issues acting for the buyer
  • Extent of due diligence
  • Group companies
  • Personnel
  • Data protection issues—the transaction
  • Confidentiality
  • Data protection issues—the target
  • Employees
  • Employees working in other businesses
  • Employees with particular status
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

On a share purchase, the buyer takes over ownership of the company carrying on the business (the target company), acquiring as a result all of its assets, obligations and liabilities, whether or not the buyer was aware of them—see: General issues (share purchase)—overview.

The starting point for a buyer in any share purchase transaction is the maxim caveat emptor (let the buyer beware). Since the seller is under no duty to disclose to the buyer any defects in, or liabilities of, the target company, the buyer will always need to conduct its own investigations. The buyer will therefore instruct its advisers to conduct due diligence on commercial, tax, financial and legal matters (including employment), and to prepare due diligence reports to highlight material issues arising from their review exercise.

From the buyer’s perspective, the purpose of due diligence is risk management. For further

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