So what would you be buying, why no just set-up a new company, that does the same thing yourself.Brendan, I did not mean 'Walking away' in the literal sense. As a potential buyer I was wondering if I could buy off something clean without carrying their past history even if it means paying a small premium to sort things straight.
Folks, Thanks for your reply.
I started with the normal process of buying off the company & business. But when I saw the debts and loans they had, I realised that it could take ages to bring this to a decent shape. That is when I thought about an alternative which is as follows :
I was thinking to setup a new company , buy off their lease and equipment + a premium as we will be using their established base. So we will start operating in the same place, same customer base, same staff, New name, New management.
I will ask the staff to resign from that company and join the new company. The cutover should be seamless. It would look like it is the same business as far as customers are concerned without any break. But legally this is a new company which will have no debts.
I am not buying the company with its bad history , but just buying the business, their experienced staff and the location which is popular with the customers.
Am I missing something ? I hope this is legal.
The whole situation is much too complicated and strewn with pitfalls to discuss to any meaningful extent on a forum such as this.
Unfortunately not all issues in business or in life are simple and straightforward, and unfortunately the regulatory framework in this country is complex - especially in areas such as insolvency and employment law, both of which affect (or affected) the situation you outlined. I would have thought it pretty obvious that a discussion such as this one is likely not to cover all these issues comprehensively. You admitted this in your first post when you said:I know it is complicated, but pitfalls ?!!! Isn't that the reason why somebody posts here - To find out what they are. Why wouldn't one discuss complicated issues in this forum ? Is this only meant for ' How do I setup a new company' kind of questions.
I know I have to speak to my solicitor, accountant etc., but just looking for some preliminary advice.
Tread carefully. The HR issue is a legal minefield. What if the staff don't agree to your request to resign? Are you intending on misleading customers and suppliers as to the legal entity with which they are trading? How do you plan to get customer lists or supplier lists from the old company? How do you plan to manage the transition with customers, i.e. getting them to pay older invoices to the old company while placing new orders with the new company?I will ask the staff to resign from that company and join the new company. The cutover should be seamless. It would look like it is the same business as far as customers are concerned without any break. But legally this is a new company which will have no debts.
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