Can you buy a business with a loan from the company you are acquiring?


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Could a Business Help Fund Its Own Acquisition?

Buying a business does not always require the buyer to fund the entire purchase price upfront. In an article for Growth Business, Peter Kouwenberg, Partner at Taylor Walton, explores how a business’s financial resources could help fund its own acquisition and the legal and tax considerations involved.

The article examines different approaches, including seller finance, loans from the acquired business and payments from future profits. It also highlights the importance of properly structuring and documenting these arrangements, considering directors’ duties and ensuring the business can maintain its financial stability.

With the potential for poorly structured arrangements to create significant tax liabilities and legal complications, early planning and professional advice are essential to protecting both the buyer and the future of the business.

You can read Peter’s full article here: Can you buy a business with a loan from the company you are acquiring? – Growth Business

Disclaimer: General Information Provided Only

Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.

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