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What Is A Business Transfer?

By FastLane Team, April 1, 2021 (5 mins)

In some cases, an investor may wish to purchase a portion of a business or assets of an entity without taking the steps to completely purchase a business. Often called a “share transfer”, the purchase is completed through the buying of shares of a business and taking ownership of a portion of the company.

 

A business transfer may be relevant as an option when one wishes to avoid the hassle of working through a full purchase process. Understanding how the business transfer process works, and how a firm such as Fastlane can help you complete one effectively.

In this article, we will discuss the following:

1. What Is The Process Of A Business Transfer?

2. What Documents Must Be Prepared For A Business Transfer?

3. How To Publish The Notice Of Transfer

4. Are There Any Restrictions Related To Business Transfers?

5. How Fastlane Can Help Execute Your Next Business Transfer 

1. What Is The Process Of A Business Transfer?

In a business transfer – whether completed internally or externally – due diligence will be completed in order to ensure that the process is set up properly. This will include the transfer of any assets, employees, property, and more. The due diligence process will help create the necessary steps for transfer of the business, as well as any necessary documentation that will need to be prepared.


As the business transfer commences, the transferee will undertake both the rights of ownership as well as the liabilities that come with the transfer. This means that the original company that transferred the business and any assets will no longer be held liable for any legal issues that may occur once the transfer is completed.

2. What Documents Must Be Prepared For A Business Transfer?

Depending on the transfer and those involved, there may be unique documents required for the transfer to be legally completed. In most cases, the following documentation will be required:

  • Memoranda of Understanding (MOU)
  • Master Agreement
  • Shareholders’ Agreements
  • Any other agreements to implement the business transfer dependent on unique business peculiarities

The documentation involved with a business transfer will require the oversight of an expert. Any mistakes or missing paperwork can potentially cause interruption to the process or even void the process. To ensure that you know the proper documents that you will need to complete the business transfer, work with a skilled and experienced firm to guide you through the steps.

3. How To Publish The Notice Of Transfer

Once the business transfer has commenced, you will need to prepare a Notice of Transfer for publication. The Notice of Transfer will notify those interested that the portion of the business has been transferred to another entity through the transfer, and will give the necessary details of the transfer.

If there is a change of address or contact information for correspondence, you will want to include that data on the notice of transfer as well. Ensure that you publish the notice on your company website and other communication channels, as well as in any stakeholder documents.

4. Are There Any Restrictions Related To Business Transfers?

Depending on the details of a particular business transfer, there may be restrictions placed on the process. In many cases, the Master Agreement will lay out the specific rules in effect for the business transfer – as well as how the process should proceed depending on what part of the business is being transferred and to whom. To ensure that you avoid any restrictions that could void the transfer, take the time to complete due diligence and work with a qualified firm to walk you through the process. 

How Fastlane Can Help Execute Your Next Business Transfer

If you are looking to discover more about business transfers and how to take advantage of the benefits of one, the team at Fastlane is ready to guide you through the process. With the process containing many steps and complexity, you will want to ensure that you have completed the necessary due diligence to avoid any potential issues.


The team at Fastlane has years of experience and expertise helping process business transfers for companies and entities. To learn more, contact our team for more information.



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