ELI Deal Legal Assistance for Buying Businesses

mergers and acquisitions

An entrepreneur wanting to establish his/her commercial structure may as register a new enterprise and start his/her business from scratch, as buy an already operating enterprise with all its assets.

To do this, it is necessary to understand the legal side of the procedure, especially if an international transaction is planned. At the same time, they want the lawyers who provide services to be adequate, to know their business, to have the necessary experience and knowledge, to be a model of client orientation and, at the same time, inexpensive. ELI-Deal confirms its readiness and ability to provide clients with the requested legal assistance, as well as the availability of specialists with relevant experience and necessary qualifications in the provision of legal assistance in matters relating to business for sale.

ELI-Deal Activity Field and Accompanying Points

Typical risks in transactions for the purchase and sale of a business:

  • insufficient understanding of the industry or scope of the company;
  • the presence of hidden costs;
  • insecurity of the client base;
  • unverified or difficult to verify data on the parameters of activity (revenue, profit, cost, etc.);
  • ignorance of the true reasons for the sale or purchase of organization;
  • incomplete transfer of the subject matter of the agreements;
  • incorrect structuring of the deal.

Nevertheless, one of the most common mistakes is misjudging a business. It must be taken into account the buyer acquires not only a legal entity with a package of documents, but also property, relations with counterparties, debts, obligations and losses of the company.

ELI-Deal legal assistance for sale and purchase of companies:

a) data reliability verification connected with parameters of company’s operational field (profit, cost, etc.);

b) identification of juridical and tax risks connected with activities of the seller, as well as those accompanied transaction itself and its execution by the parties;

c) preparation of the necessary documentation for the transaction;

d) advice for changing transactions;

e) analysis of seller and his documentation, confirming that he/she has firm, assets, liabilities;

f) assessment transactions, its conditions for compliance with the goals, objectives of buyer and shield of his/her interests;

g) evolving in negotiations and support of negotiation process;

h) support of the process of concluding and executing the transaction.

If the mistake of the previous owners was recorded when submitting reports and declarations, the tax service may collect additional funds for the past and the year before last. To insure against such surprises, the responsibility of the former owner for the payment of all taxes and fees for the period when the enterprise was owned by him/her should be written in the contract. ELI-Deal services will also be required at the time of drawing up and signing the contract.

Thus, the former owner receives a guarantee of timely payment of the agreed amount, even if his/her former business is closed or ruined. The obligations of the buyer under the letter of credit are additionally controlled by the bank, which greatly increases the reliability of the transaction. At the same time, the cost of the money transfer procedure is increased by connecting additional services from the bank. The involvement of a professional Eli-Deal lawyer in the sale and purchase transaction will help protect the rights of both the buyer and the seller, speed up the transfer procedure and allow it to be carried out without unnecessary risk.

A team of experienced ELI-Deal specialists with extensive professional experience in this area will help not only with advice, but also with practical support for each transaction. Deep knowledge of the general company sales industry as such and the laws of each jurisdiction in particular gives our specialists the ability to introduce our clients into commercial activities quickly and safely.