On completion day, the final legal and financial steps of a business sale take place. Once the agreed documents are executed and the required payments are made, ownership or the relevant business assets transfer to the buyer in accordance with the sale agreement. The exact process depends on whether the transaction involves a share sale or an asset sale.
Three key activities typically take place:
- Finalise legal documentation: The buyer and seller complete the agreed transaction documents, including any outstanding declarations, transfers or supporting agreements.
- Transfer the purchase funds: The buyer pays the agreed completion amount through the arrangements established by the parties' solicitors. Some payments may be deferred or subject to later adjustments.
- Transfer ownership and control: The agreed shares or business assets transfer to the buyer, alongside relevant records, access credentials and operational responsibilities.
For example, in a share sale, the buyer acquires ownership of the company's shares, while an asset sale involves transferring the assets and rights specified in the purchase agreement.
Your solicitor should confirm that the completion conditions have been satisfied and explain any obligations that continue after the sale.
Read more: What Happens After Buying or Selling a Business?
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