Transfer of Businesses as Going Concerns

These types of transactions are markedly different from the more common alternative, namely a Share Purchase Agreement.

Transfers of a going concern typically occur when individuals—or occasionally Companies and Partnerships—transfer their business to another person or group of individuals. In essence, this is the transfer of the business as an active, operational entity. Such a transaction is exempt from VAT provided both parties are VAT registered, and the business will continue to operate after the sale is completed.

There are several important considerations to keep in mind with these transactions, including the apportionment of price and other relevant responsibilities. Our team is here to provide expert guidance on every aspect of the business sale or purchase as a going concern.