In this first episode of a new series about buying a business Shaz looks at shares and assets.

It’s important to understand the differences for both the buyer and the seller when selling and purchasing assets and shares and Shaz explains the differences and why sellers usually prefer selling assets.

Ultimately it’s about understanding what both the seller and buyer want and what’s required when assets or shares are sold as part of a business and Shaz shares great advice about what needs to understood when buying any business.

 

KEY TAKEAWAYS

• Most buyers favour buying the assets of a company.
• If you buy the shares of a company you take over all the previous liabilities
• If a seller sells the assets they can’t claim entrepreneurs relief.
• If they sell shares they can claim entrepreneurs relief if they meet the criteria.
• Sellers will usually prefer to sell shares not assets.
• If you are selling the assets it’s likely you will have more interest because buyers prefer to buy assets.
• The sale will potentially move more quickly with assets because there is not the same due diligence required.
• If the buyer is buying assets and goodwill then the goodwill value has to has an agreed value
• With shares, you can claim entrepreneurs relief on the first million.
• If you are buying shares both financial and legal due diligence need to be completed.
• The sale of shares takes a lot longer than the sale of assets.
• You need to factor in the fees when you are buying a business.

 

BEST MOMENTS

‘The seller has more leverage selling assets’

‘Selling assets will mean the sale is faster’

‘My preference is to buy the assets but it does depend on the circumstances’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook

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  YouTube.