What are the prerequisites for a company acquisition?
November 4, 2023 | 40,00 EUR | answered by Christian Ahlert
Dear Corporate Lawyer,
My name is Jan Binder and I am currently in the process of purchasing a company. In this context, I have some questions regarding the requirements necessary for a successful company acquisition.
For background information: I have been working in the industry in which the company operates for many years, and I have decided to take the step towards self-employment. After intensive research, I have found a company that meets my criteria and that I would like to take over.
My concerns primarily revolve around the legal aspects of the company acquisition. What requirements must be met for the purchase agreement to be legally valid? What documents and materials are needed to complete the company purchase? Are there any specific legal risks that I should be aware of?
I am also interested in the options available for financing the purchase price and what tax aspects I need to consider. How can I ensure that all contracts and agreements are legally secure and that I do not encounter any unexpected legal issues after purchasing the company?
In summary, my question is: What specific requirements must I meet in order to successfully carry out a company acquisition, and how can I minimize legal risks? I look forward to your expert advice and thank you in advance for your support.
Sincerely,
Jan Binder
Dear Mr. Binder,
Thank you for your inquiry regarding the purchase of the company. I understand your concerns about the legal aspects and would like to provide you with comprehensive advice on this matter.
First and foremost, it is important that the purchase agreement for the company is legally valid. Certain requirements must be met for this. These include agreement on the object of purchase and the purchase price, the legal capacity of the contracting parties, and compliance with formal requirements. It is advisable to consult an experienced lawyer who will review the purchase agreement for its legal validity and suggest any necessary adjustments.
Various documents and records are required for the execution of the company purchase. These include, for example, excerpts from the commercial register, balance sheets, contracts with suppliers and customers, employee contracts, and other relevant documents. It is important to carefully examine all of these documents to identify potential risks early on.
There are different options for financing the purchase price, such as bank loans, equity, or investments. It is also advisable to seek legal advice in this regard to consider tax aspects and find an optimal financing structure.
To ensure that all contracts and agreements are legally secure, I recommend having all documents reviewed by an experienced lawyer. They can identify potential pitfalls and help minimize legal risks. Additionally, it is important to ensure that all contracts are clearly and unambiguously worded to avoid misunderstandings.
In summary, it is important to seek thorough legal advice before purchasing a company in order to minimize potential risks and successfully complete the purchase. I am available for a personal consultation and look forward to supporting you on your path to entrepreneurship.
Best regards,
Christian Ahlert, Attorney specializing in corporate law
