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I'm confused because the agent replied to my question below with the following yesterday:
ME: I understood the owner to say that the Ltd company is for sale rather than the business, can you confirm? –
AGENT: I did pick up on this in my email reply to you dated 02/03/15 07:48am where I said: Before asking these questions your accountant should have asked first if this was a “Share Sale” or an “Asset Sale”, it is in fact the later meaning you are just purchasing the Goodwill Fixtures & Fittings not the shares as this would mean you would take on the company liabilities, in this case these will remain with the owner. Our advice is not to get involved in share sales of limited companies turning over less then £1.5m as the due diligence costs for both accountants are just too prohibitive, an asset sale is much simpler. The other reason is that very few Landlords will agree to the lease being in the name of a limited company anyway without guarantors unless of course you are a large multiple so most leases are in the name of the business owner.
The agent and my financial adviser who is tasked with obtaining a loan both said it would be a 3 way solicitor setup. 1 for each side, me, the owner and the landlord.
I have met with the vendor and she assured me the landlord would be happy to extend the lease for 5-10 years as he is happy with the way she turned the business around since 2011-12.
What do you advise in terms of contracts, checks etc.. should I get a solicitor on board once we in principal agree a price, of course subject to lease, debts. I'd like to put all of this in writing so I don't take on any potential debts or issues, I know I want to have a lease with the right to extend should I wish to do so and so on
Should I get a good solicitor on board before or after agreeing a price?
Then get an accountant to advise how to make the best savings on tax, get some SBR from the local authority etc etc?