Business Transfer Agreement

There are various reasons why you may want to transfer a business. This can serve as an alternative to selling your company or buying another company. Instead of buying or selling shares, the company itself sells its business, which includes all or selected assets and liabilities.

Transferring a business may also be appropriate if a company has multiple businesses and wishes to transfer one to a buyer while retaining the others. Another reason could be the reorganisation of your business, such as separating a trading business from property or dividing two trading divisions into different entities. In any case, it is essential to clearly outline which assets and liabilities are being transferred and to address any contracts involved in the transfer. If employees are part of the business being transferred, they will automatically become employees of the transferee under TUPE (Transfer of Undertakings (Protection of Employment) Regulations). Failure to comply with TUPE can result in substantial employee claims.