How do we handle business closing digitally?
See our digital process below:
We meet with you virtually and help you decide between a share purchase and asset purchase.
Shared through email or our secure online portal.
Negotiate with the opposing counsel to dish out the terms of the asset purchase or share purchase agreement.
Carry out the necessary searches to ensure that you’re getting what you bargained for.
Have you execute the closing documents through our digital document signing applications.
Closing and Post-Closing
Handle any closing and post-closing matters such as exchange of closing documents, funds, and keys.
If you’re interested in buying or selling a business, speak to one of our lawyers experienced with business closings. The two primary ways of buying or selling a business are asset purchases and share purchases.
Asset purchases involve the buyer purchasing, as the name implies, the assets of the business. The buyer has ability to “cherry pick” the assets of a business that he or she would like to purchase. The benefit of an asset purchase for the buyer is that the buyer is not obligated to purchase the corporation, which may be the legal entity in place for the business. This prevents the buyer from assuming liabilities and obligations of the corporation. For instance, if an employee has an employment related claim against the corporation, this would survive the business closing and impact the new owners (or shareholders). Despite the due diligence carried out by lawyers prior to a business closing, something of this nature may be challenging to detect.
Share purchases involve the buyer purchasing the shares of the corporation being sold. Share purchases are considered to be “turn-key” solutions to buying a business. This is because the buyer is essentially taking over the corporation and does not need to spend time transferring the various assets of the business to his or her name (or corporation’s name). However, this comes with the added risks of liabilities and obligations of the corporation as mentioned above. This method is usually preferred by sellers because of certain tax entitlements such as the Lifetime Capital Gains Exemption.
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