Buy a Limited Company 2018-02-21T13:12:29+00:00

Buy a limited company

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Willing to buy a limited Company? This section spells out all you need to know about it.  The author is a corporate lawyer who assists both individuals and businesses in setting up a ltd company on a daily basis. Please feel free to get in touch should you have any queries.

Buy a limited to exploit a business opportunity

Starting your own business is no easy task. Sometimes a more viable option is just to buy an existing company that has already completed the necessary groundwork. Here are some things you should know before you decide on how to start your business.

Potential Benefits

Lower Risk

Buying a company is admittedly more secure than starting anew. By looking into an existing business, you won’t have to go through the trouble of registration and other starting procedures. The company will also have well-established structure and reputation, so you will be able to get started a lot quicker.

Experience and Connections

Once you acquire an existing company, it will most likely come with an experienced team of employees. They can be a great resource to help you run the company. This also means you will get to deal with existing clients and suppliers, so you won’t have to claw your way into the market.

Financial Stability

If you’re buying an active business, it will most likely have some level of cash flow going on. This means it will be easier to get on your feet and turn the business profitable than starting from scratch. An existing track record will also help you consider

Buying Options

As a buyer, you can choose between buying the shares of the company or just the assets. The difference between the two is that with shares you also acquire all of the liabilities, assets and obligations. When buying just the assets, you get to define exactly which ones you want to obtain. Either way, the process can get lengthy, if you want to protect yourself from buying a pig in a poke. So make sure you’ve done solid research or get professional advice to consider every option before making the final call.

In view of the legal, technical and practical difficulties involved in dealing with setting up a ltd company, it is highly advisable to seek the assistance of a business lawyer, at a very early stage, possibly before signing any document. Any mistakes, in the long run, might compromise your business and therefore create several damages. Moreover, there is not only a limited company to fit your needs. You should always select a legal structure of a business which is compatible with your target market.


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