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What is a Business Acquisition?

An acquisition is where a part or several parts of a company is bought and divided or combined with different companies that will help an enterprise grow faster. These prevent enterprises from having to make smaller, children companies. For more questions that have been answered by Experts read below.

Can an owner of an acquired company get their money back that was mistakenly paid to a debt that was the obligation of the former company?

The new owner of the acquired company might be able to let the debt collector sue him/her for the funds that is due on behalf of the defunct company. Then it may be possible to counter sue for repayment of the money paid by mistake. In most cases, the debt collector cannot collect debts from a defunct company.

If a company is being acquired only for their assets and offices, but not for their name, can the prior owner retain the rights to the name of the company even if it is not copyrighted?

The trademarking of a company name might have made retaining it easier, but the sellers could possibly ask for the name to be retained in the papers that are drawn up in the sale agreement. Although in the agreement the retained portion of the company may have certain stipulations attached to it.

Can a company that acquired the assets of another company have the financial statements audited to include the buyer’s privet placement if parts of the statements were omitted?

Taking the financial statements to the buyer’s auditor and having them redone may possibly help the financial statements gain credibility with potential investors who are looking into a privet placement options. The buyer may very well have a good idea in doing this to help with their potential investors.

Can an owner sell a company that still has debts on some of its assets, if the person that is doing the acquisition agrees to take over the debts?

When the sale agreement to the company is drawn up, the seller needs to state that all debts of the company are to be taken over by the buyer. If all debts are under the company name then this should be all that is needed to transfer everything to the buyer. However, if the debts were personally guaranteed by the seller he/she may need to go to the places where the debts are owed and give them the new owner’s information. Every detail of the acquisition should be covered in the sale agreement that is drawn up between the seller and the buyer. 

When a larger company needs to expand their market of certain services they may look to a smaller company to do an acquisition with. This may take time and confusing paperwork. Consulting the Experts may give the insight that is needed to clear up any questions which may arise.

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