Corporate acquisitions and mergers
A corporate acquisition can refer to the sale of the entire company, part of the company or even all of its business operations. In corporate acquisitions, it is essential to consider not only the commercial and economic conditions but also the legal conditions and their effects on both the seller and the buyer. In corporate acquisitions, it is necessary to consider matters pertaining to corporate, tax, labour, competition and accounting law.
Resolution of legal issues comparable to corporate acquisitions is also necessary in the internal ownership and business arrangements of a company or group.
It is in the seller’s interests to achieve the best possible price for their business. Valuation also requires legal expertise. LSL-Legal has the required expertise in all related taxation and other legal issues.
Sale of a business
The tax treatment of sales profit is a key issue. The preparation of the object of sale for the transaction is essential to the success of the project. The seller has to determine the most attractive form for the object of transfer: whether or not there is a need for balance sheet relief, such as the removal of investment property, how to effect a pre-trade profit distribution, is the handover of contracts made by the company acceptable as part of the transfer, who is responsible for employees that are transferred, etc. To optimise corporate acquisition taxation, the seller must particularly ensure that taxation of hidden dividends is prevented.
For the buyer, the first matter to be resolved with regard to risk management is whether to buy the entire company or only its business operations. Financing and the related tax may have a direct effect on the legal form and content of the corporate acquisition. Sometimes a corporate acquisition is possible only through a so-called dummy company or a merger.