Buying a business: Share purchase or asset purchase?

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Buying a business: Share purchase or asset purchase? by Mind Map: Buying a business: Share purchase or asset purchase?

1. Tax reliefs available

1.1. SSE

1.2. Intangibles relief

1.3. Capital allowances for know-how

1.4. Entrepreneurs relief

1.5. CGT & intangibles roll-over relief

2. Non-tax considerations

2.1. Inherited corporate liabilities

2.2. Warranties & indemnites

2.3. Raising acquisition finance

2.4. Employee considerations

2.5. Choice of assets to be acquired

3. Evaluation Methodology

3.1. 1. Valuing the goodwill

3.2. 2. Valuing the overall business

3.3. 3. Forecasting future cash-flows

3.4. 4. Estimating sale price on exit

3.5. 5. Calculate NPV of cash-flows under share purchase

3.6. 6. Calculate NPV of cash-flows under asset purchase

3.7. 7. Compare NPV analysis results

3.8. 8. Reconcile differences

3.9. 9. Stress test results

4. Factors affecting cash-flows

4.1. Differential purchase price depending on acquisition method

4.2. Future IT, CT & CGT rates

4.3. Differential tax regimes for individuals and corporates

4.4. Differential CGT base costs

4.5. Exit strategy

4.6. Tax reliefs available