What is involved in buying another company

K

Kuntakinta

Guest
Hi I am a joint owner (with my wife)of two companies operating in similar businesses.
They both import and distribute industrial components.
Both are run from my home office. The turnover in one of the companies has collapsed this year and I am considering shutting it down,
The second company is doing quite well. Is it feasable for the triving company to buy the struggling company and how dose the cost of this compair to a liquidation.
Both companies are solvent and have no employees other than my wife and I.
All advice welcomed

Regards
Kunta Kinta
 
You could get quick glib answers here but you have a thousand-and-one queries there ! Really you need professional accounting and tax advice from an accountant face-to-face.

Either ask around the site, the yellow-pages or PM me !
 
if the company is bought over the cost will be what ever is required to clear all of the companies debts.

The liquidation cost will depend on the side of the company and assets. So could be anything from 10000 to !!!
 
You can easily get liquidations done for much less than 10,000. If all of the debts of struggling company are settled there may be no need for a liquidation. The net assets of the struggling company are sold to the remaining company and the struggling company is then wound up as normal - advert in the paper, tax clearance letter, form to CRO.
Setanta is right though any info gleaned from this topic should be verified with your accountant. If you cant talk to your accountant get an other one. I am an accountant!! :>
 
Impossible to give a percise answer here. Need the Balance sheets. Seek an accountant and watch for tax consequences.
 
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