The founder of a company can transfer their business by selling shares of the company (so-called “share deal”) or, alternatively, by selling the assets of the company (so-called “asset deal”). Taking over the entire company implies taking over all risks from previous and current operations. On the other hand, when buying individual assets of a company or transferring assets, such risks are lower.
An asset deal occurs when a buyer is interested in purchasing the operating assets of a business instead of stock shares. It is a type of M&A transaction.
In order to complete the asset deal transaction, an Asset Purchase Agreement (APA) is used. This agreement outlines which specific assets will be purchased. The terms of an APA also include details such as the total consideration, payment structure, timing, representations, warranties, and other standard legal terms.
In a transaction worth millions, in which the founder of this Legal Office actively participated by concluding the “Framework asset purchase agreement”, and on the occasion of the so-called “asset deal” in Bosnia and Herzegovina (German: Verkauf von Vermögenswerten) with the transfer of the business unit, movable and immovable assets within the Zenica Branch and the Sarajevo Branch, and the sale of movable assets in Kiseljak, the sale, i.e. asset deal, was successfully realized by registering the buyer as the owner of the immovable assets in the land registry office in Zenica and Sarajevo. The registration of ownership rights with the Municipal Court in Sarajevo was realized by registration of 12 October, 2016, case number 065 – 0 – DN – 16 – 029 849.
The transaction was preceded by the adoption of the Decision of the BiH Competition Council No. 03-26-1-10-81II/15 of 16 February, 2016, which allowed the concentration that occurs on the relevant market, and by which the buyer will gain control over parts of the business entity by purchasing its three business entities.
Also, the transaction was preceded by comprehensive “due diligence” in which the buyer checked in detail the financial, legal, commercial, and technical aspects of the object of purchase.
If you need counselling on the subject of Asset deal in Bosnia and Herzegovina (German Verkauf von Vermögenswerten) as a company, company member, director or founder or you need corporate law attorney for your company or for your business idea, then you are in the right place with us and you can contact our corporate law attorneys directly by phone (+387 62 342 463), WhatsApp, Viber or e-mail (rasid@haracic.ba).
