Selling company

Tax options avoiding evasion/avoidance problems

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By bernard michael
02nd Aug 2018 10:18

YES it's being sold too cheaply. You need to re-examine the purchase price
There should be more value on top of net assets for a company generating ongoing large cash deposits

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By Martymcfly
02nd Aug 2018 10:48

Sorry to clarify the 60k is the expected net posistion of the company, It has some existing debtors and a few ongoing projects to complete so is still trading but will no longe generate any further cash beyond that. As any potential new business will be attributed to the purchasing company.

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By Duggimon
02nd Aug 2018 10:56

Your clients are selling £60,000 plus their company for £60,000, they're selling their company for nothing.

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By Ian Bee
02nd Aug 2018 11:03

Agree with the comments above, but it may be easier to look at it the other way round. Why would the purchaser pay £60k just for £60k debtors and cash? They are no better off, so why do they want to buy the company at all?

If you answer that, I think you will see that the asking price is too low.

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By Portia Nina Levin
02nd Aug 2018 11:13

This isn't the sale of a company at all! It's a company purchasing itself!

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