Vernon & Salmon Arm Corporate Lawyers Advising on Business Purchases & Sales

CM Lawyers helps entrepreneurs and business owners minimize risk and maximize opportunity when buying or selling a business. With decades of experience guiding clients through business transactions, our seasoned business lawyers help you navigate the legal, tax, financial, and real estate considerations involved in selling or purchasing a business.

We assist clients of all sizes, from start-ups and new ventures to multinational corporations, and pride ourselves on the strong relationships we build with our loyal client base. Our lawyers are highly knowledgeable and extremely skilled practitioners who are innovative, progressive, and tech-savvy.

Considerations for Buying or Selling a Business in B.C.

Buying or selling a business can be a complex and emotionally charged decision, requiring careful planning and strategic execution.

At CM Lawyers, we ensure you do not have to navigate the sale process alone. Our business law team guides clients and protects their interests at every step. We will work closely with you to:

• Identify potential risks: Our lawyers will meticulously evaluate the proposed sale or purchase, pinpointing potential roadblocks and developing strategies to overcome them. We thoroughly review financial statements, employee contracts, inventory lists, holdings and assets (including intellectual property and commercial leases) to ensure you avoid unforeseen complications that hinder your bottom line.
• Navigate legal complications: From tax implications to due diligence and regulatory requirements, we handle all legal issues to ensure a smooth and compliant transaction.
• Maximize return: Our team will negotiate with buyers or sellers on your behalf to secure the best possible price and terms for your needs.
• Ensure a smooth transition: We guide you through every aspect of the sale, ensuring a seamless handover between parties.

Asset Sales vs. Share Sales

The purchase or sale of a business is a significant milestone, requiring trusted advice to achieve a successful outcome. The business lawyers of CM Lawyers understand the intricacies of asset and share sales and identify the approach that best suits your unique goals and circumstances.

Asset Sales

In an asset sale, the buyer acquires specific business assets, such as inventory, equipment, intellectual property, or contracts. Sellers often prefer asset sales as they offer certain tax benefits, particularly relating to capital gains. However, the seller remains responsible for any liabilities not transferred with the assets and may be required to dissolve the corporation post-sale.

From a buyer’s perspective, they acquire only the desired assets while avoiding unwanted liabilities. However, they may need to renegotiate existing contracts with suppliers, landlords, and employees and renew certain licences or permits.

Share Sales

In a share sale, the buyer acquires all shares of a corporation, essentially purchasing the entire business entity. This offers the seller a clean break from the business in a single transaction and may provide some beneficial capital gains treatment.

The buyer benefits from the continuity of operations and contracts provided in a share sale. They may receive an established customer base and brand recognition within the industry and community. However, they also inherit all existing liabilities, including unknown or contingent ones that may manifest in the future. As a result, due diligence is critical to identify all risks to ensure the business will be profitable, sustainable, and legally sound.

In some circumstances, a hybrid sale (or combination of asset/share sales) can be structured to best address the parties’ specific needs.

CM Lawyers: Over 50 Years of Experience Guiding Business Purchases and Sales in Vernon and Salmon Arm

Buying or selling a business is a sizeable undertaking. The business lawyers at CM Lawyers provide top-tier, trusted advice that empowers clients to make informed decisions for a successful transition and profitable outcome. We work with companies of all sizes across a wide range of industries and business sectors and develop lasting relationships with our clients.

CM Lawyers is conveniently located in Vernon and Salmon Arm and proudly serves the surrounding areas, including Northern Okanagan and Shuswap. To schedule a consultation, call our Vernon office at (250) 308-0338 or our Salmon Arm office at (250) 803-9171, or reach out online.