Are you selling an industrial site and are you considering share deal? Then it is good to know that the buyer is not only buying buildings and land. He is buying the whole company, with its history, debts and liabilities. And this carries specific risks that need to be controlled.
Share deal vs. asset deal – a simple explanation
- Asset deal – you only sell specific assets. The buyer only takes what you select and does not take over old liabilities.
- Share deal – you are selling a business share. The buyer takes over everything – both active and passive. Including all past and possible future liabilities.
What to look out for when selling an industrial site
- Financial and tax liabilities – fines, arrears, unexpected debts
- Environmental burdens – contamination, remediation costs
- Labor relations – disputes, collective agreements, internal rules
- Third-party contracts and consents – clauses on change of ownership, lease or supply contracts
- Tax and accounting errors – VAT, income tax, transfer pricing
- Regulatory obligations – registration of beneficial owners, collection of documents
How to protect yourself
The easiest way: good due diligenceYou will identify any hidden risks, prepare contracts to protect you, and negotiate indemnities or guarantees, if necessary.
Why do it?
- You will avoid financial surprises after the sale
- You will avoid problems with authorities and employees
- You maintain the value and operation of the premises without interruption
Tip for getting started
All you need is a professional lawyer and a clear plan:
- Map all company contracts and obligations
- Review accounting, taxes and liabilities
- Check environmental and HR risks
- Prepare a contract with guarantees and protection mechanisms
Are you considering selling or buying an industrial site? Or are you considering which method of acquiring a company is best for you? Contact us! We will prepare a tailor-made analysis for you.
