حماية مصالحك عند شراء نشاط تجاري قائم

Dear Questioner,

With reference to your inquiry, kindly note the following:

1. You shall ask for the Trade License of the said business, and double check on the same with the issuing authority.

2. Check General Ledger (or its substitute) of the said business, in order to have a better understanding of its profits, losses...etc.

3. In the Sale & Purchase Agreement (SPA) of the business, you shall mention a Clause which is stating that the current owners will be held liable for any and all claims, debts.....etc of/against that business, as long as it has arisen before the transfer date (i.e. date of transferring the ownership of the business to yourself).

4. Also take a pledge letter from the current owner (written undertaking) which stipulates upon their full responsibility in case you have discovered, by any means, that the business is owing anything to anybody, whether it was related to the business itself or not.

5. In Nos. (3 & 4) above, you also need to mention that you shall not be responsible for any of the said debts, claims...etc. In addition to that, you shall be entitled to compensation in case of the current owners' breach.

Those are the most important points you need to consider.

Hope the above has made everything crystal clear at your end.

For any further assistance, please contact us on (elkhatib.legal@outlook.com).

Kind regards.

Dear Questioner,

I would recommend you to do all due diligence checking, including financial and legal checking.

Afterwards, you need to draft the relevant documents including but not limited to the Sale and Purchase Agreement, Addendum to the Memorandum and Article of Association...etc.

If I can be of assistance, please feel free to contact me on rg@elnaggarlegal.com

Thank you.

Best regards,

Raluca Gatina.

Hi,

Purchasing an existing business requires the current and new owner to mutually agree on several terms before finalizing the sale agreement.

This is because existing companies have a large number of assets and liabilities.

Once a contract has been agreed upon, the company’s structure must be amended through relevant government departments.

The types of amendments depend on the company’s current structure and what the new owner would like to change.

Please feel free to get in touch with us at info@v7legal.com and perhaps we could set up a meeting to further discuss your interest in buying a company.