Net assets business transfer

Net assets business transfer

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Hello everying, should cash be considered in the trading net assets sale from one legal entity to another? many thanks 

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By paul.benny
22nd Jun 2020 17:04

Depends on the sale and purchase agreement. What does that say?

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Replying to paul.benny:
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By qwertyqwerty05
22nd Jun 2020 17:46

net trading assets, this would include cash, right? thanks

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Replying to qwertyqwerty05:
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By qwertyqwerty05
22nd Jun 2020 17:46

in principle

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By Tax Dragon
22nd Jun 2020 17:35

And if that is not clear, you need a lawyer.

In fact, lack of legal advice would be the only reason it's not clear.

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By Cheshire
22nd Jun 2020 19:42

Plus possibly lack of DD

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paddle steamer
By DJKL
23rd Jun 2020 13:58

Should David Davis have screwed up this deal as well?

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By anapa
22nd Jun 2020 19:40

If they're selling the cash balance too then yes. If not, then no. Check the agreement.

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Replying to anapa:
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By Tax Dragon
23rd Jun 2020 07:16

Or take legal advice. If there's a dispute here, it's not an accountant's job to resolve it.

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By paul.benny
23rd Jun 2020 11:19

Let me guess: The agreement, such as it is, refers to "net trading assets" but omits to define the term. And now you have a tug of war over the cash.

In the absence of a properly defined agreement, the parties will have to decide whether the sums involved are worth the legal fees to sort it out.

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Replying to paul.benny:
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By qwertyqwerty05
23rd Jun 2020 13:37

Exactly that ...

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