Purchase / Sale of New Business

The Purchase or Sale of a New Business involves the process of buying or selling an existing business entity. This can be a strategic move for entrepreneurs and investors looking to expand their business portfolio or enter new markets. Whether you’re purchasing a business for its assets, goodwill, or operational model, or selling your business to move on to new opportunities, a well-structured transaction is essential to ensure that all legal, financial, and operational factors are thoroughly addressed.

Documents Required

Purchase of Business

Business Purchase Agreement

Due Diligence Report (Financial, Legal, Operational)

Financial Statements of the Business (last 3 years)

Valuation Report

Tax Returns (last 3 years)

Employee Agreements and Liabilities

List of Assets and Liabilities

Intellectual Property Documents (if applicable)

NOC from Creditors (if applicable)

Lease or Property Ownership Documents

Sale of Business

Business Sale Agreement

Due Diligence Report (Financial, Legal, Operational)

Valuation Report

Financial Statements of the Business (last 3 years)

Tax Returns (last 3 years)

Employee Agreements and Liabilities

List of Assets and Liabilities to be Transferred

Intellectual Property Documents (if applicable)

NOC from Creditors (if applicable)

Proof of Ownership of Business Premises or Lease Agreements

Process Timeline

Initial Consultation and Assessment

Understand the client’s objectives, whether purchasing or selling, and gather information on the business type, size, and industry.

Business Valuation

Conduct a detailed valuation of the business based on factors such as financial performance, assets, liabilities, market position, and growth potential.

Due Diligence

Perform a comprehensive due diligence process, including financial, legal, operational, and compliance checks to assess the business’s current status and potential risks.

Negotiation and Deal Structuring

Negotiate the terms of the purchase/sale, including price, payment structure, liabilities, and post-transaction agreements such as earn-outs or non-compete clauses.

Drafting of Agreements

Prepare necessary legal documents such as the sale agreement, memorandum of understanding (MOU), or letter of intent (LOI) to formalize the terms of the deal.

Regulatory and Compliance Checks

Ensure that the transaction complies with relevant laws, including tax laws, competition laws, and any industry-specific regulations.

Funding and Payment Arrangements

Identify funding sources if required, such as loans, equity, or other financial instruments, and finalize the payment terms for the transaction.

Closing the Deal

Finalize the transaction, ensuring all legal formalities, payments, and documentation are completed and properly executed.

Post-Transaction Integration (for Purchase)

If purchasing, assist with integrating the acquired business into the buyer’s operations, including aligning teams, systems, and strategies.

Tax and Financial Implications

Advise on the tax implications of the purchase/sale and ensure the appropriate tax filings and financial statements are prepared.

Ongoing Support

Provide post-deal advisory services, including monitoring the implementation of business strategies, ensuring compliance, and managing any transitional challenges.

Find the Perfect Fit for Your Budget

Choose from our range of flexible pricing options that cater to your specific needs.

₹14,999

Basic Plan

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Get Started

Initial consultation to assess the business’s suitability for purchase or sale

Basic valuation of the business based on financial statements and market analysis

Assistance with drafting the Letter of Intent (LOI) or Memorandum of Understanding (MOU) for the transaction

Guidance on legal documentation and agreements

Assistance with due diligence preparation (basic financial and legal checks)

Email support for 1 month post-service

₹29,999

Standard Plan

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Get Started

Comprehensive consultation on the purchase or sale strategy and structure

Detailed business valuation based on financial performance, market trends, and competitive analysis

Drafting and negotiation support for the LOI, MOU, and Sale/Purchase Agreement

Due diligence process management, including review of financial, legal, and operational records

Tax planning and compliance advice related to the transaction

Assistance with securing financing options or structuring payments for the purchase

Email and phone support for 3 months post-service

₹59,999

Pro Plan

A brief description goes here

Get Started

End-to-end consultation for purchasing or selling a business, including negotiation strategies

Comprehensive business valuation using multiple approaches (market, income, asset-based)

Assistance with complex structuring of the transaction (e.g., share vs. asset sale, earn-out provisions)

Complete due diligence management, including financial, legal, and operational audits

Tax structuring and strategic advice to minimize liabilities

Comprehensive support for contract negotiation, including representations and warranties

Legal assistance for finalizing the purchase or sale agreement

Ongoing guidance throughout the transaction process

Extended email, phone, and on-site support for 6 months post-service

Frequently Asked Questions

Find answers to commonly asked questions about our products and services.

What is involved in purchasing a business?

Purchasing a business involves due diligence, business valuation, structuring the deal (asset or share sale), negotiating terms, and signing the sale agreement. You also need to review the financial health and liabilities of the business.

What documents are required for the purchase of a business?

The buyer will need proof of funds, a detailed business plan, due diligence documents, and personal identification. The seller must provide financial statements, tax returns, business assets, liabilities, legal documents, and employee contracts.

How is the value of a business determined?

The value of a business is typically determined by its financial performance, market position, intellectual property, growth potential, and any liabilities it may have. A professional valuation will consider factors like revenue, assets, debts, and goodwill.

What is the difference between an asset sale and a share sale?

In an asset sale, the buyer purchases specific assets (such as property, equipment, inventory), while in a share sale, the buyer acquires the entire business entity, including assets, liabilities, and equity.

Can the seller be involved post-sale?

Yes, in many cases, the seller may assist in the transition phase, offering advice, training staff, or ensuring continuity in operations for a set period.

Is financing available for purchasing a business?

Yes, various financing options, including loans and investor funding, are available for purchasing a business. A buyer may need to provide proof of funding or secure financing before proceeding with the purchase.

What are the tax implications of selling a business?

The tax implications vary depending on the structure of the sale, whether it is an asset sale or share sale. Consulting with a tax expert is crucial to understand capital gains taxes, VAT, and other potential liabilities that may arise.

Do you provide negotiation support?

Yes, we offer negotiation support to ensure that buyers get a fair deal and sellers maximize their value. Our experts handle communication and strategy to achieve the best outcomes for our clients.