1.   A double tax charge may arise if the company sells its assets and the vendor wishes to extract the realised profit from the company.

2.   Also it should not be assumed that the vendor will wish solely to extract the profit from the company.

3.   Ideally the vendor will wish to retain absolute control over the way in which the business is managed.

4.   In addition, the vendor may wish to take a charge over the assets being sold.

5.   The vendor will subsequently wish to disclose all such documents against the warranties.

6.   Many purchasers will acknowledge that the vendor will wish to limit its liability and incorporate these basic provisions in the initial draft.

7.   The risk to the purchaser in this solution is that the vendor may still wish to pursue debtors.