In the context of M&A transactions, how you acquire is as important as what you acquire. The choice of the mode of acquisition can have far reaching implications for the buyer and the seller, inter-alia, in terms of, legal compliances, taxation, successor liability, employee transfer, stamp duty, time and effort for implementation beside the obvious commercial considerations involved. Hence, zeroing in on a structure that works best for the seller and the buyer would be the first step in the deal making process. This paper examines, the basic structure of a ‘business transfer’, how it differs from other modes of asset sale and the merits and demerits over other modes of acquisition. In doing so, we explain the legal, tax and regu-latory implications of a ‘business transfer’ and also cover certain key commercial considerations that are often heavily negotiated.
In the context of M&A transactions, how you acquire is as important as what you acquire. The choice of the mode of acquisition can have far reaching implications for the buyer and the seller, inter-alia, in terms of, legal compliances, taxation, successor liability, employee transfer, stamp duty, time and effort for implementation beside the obvious commercial considerations involved. Hence, zeroing in on a structure that works best for the seller and the buyer would be the first step in the deal making process. This paper examines, the basic structure of a ‘business transfer’, how it differs from other modes of asset sale and the merits and demerits over other modes of acquisition. In doing so, we explain the legal, tax and regu-latory implications of a ‘business transfer’ and also cover certain key commercial considerations that are often heavily negotiated.
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IFLR1000 2022: Top Tier for M&A and Private Equity
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RSG-Financial Times: India’s Most Innovative Law Firm 2019, 2017, 2016, 2015, 2014
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