ASSET DEAL

What is an asset deal?

In a n asset deal, the target is the business of a specific company, which consists of, for example, machinery and equipment, personnel, trademarks, customer relationships and the contract portfolio. The seller in the business transaction is a company that will continue to operate in the non-transferable business after the transaction. The debts and liabilities of the seller company will not be transferred to the buyer company unless they are agreed separately.

What will be transferred in the business transaction?

If the company's contracts are transferred to a new owner, the transfer of the contracts should, if possible, be agreed in advance with the contractual partners. Similarly, it may be necessary to apply for various permits and licenses in the name of the purchasing company.

 

The scope of the business to be transferred is relevant from the point of view of the VAT-free nature of the price. If it is considered to be only a transaction of individual assets, the personnel will not necessarily be transfered as the so-called old employees, and the VAT should be added to the purchase price.

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