{"id":841,"date":"2020-09-04T15:50:16","date_gmt":"2020-09-04T15:50:16","guid":{"rendered":"http:\/\/lakamsani.me\/?p=841"},"modified":"2020-09-04T15:56:40","modified_gmt":"2020-09-04T15:56:40","slug":"reliance-did-not-acquire-future-group-companies-it-acquired-assets-of-future-group","status":"publish","type":"post","link":"https:\/\/lakamsani.me\/blog\/2020\/09\/04\/reliance-did-not-acquire-future-group-companies-it-acquired-assets-of-future-group\/","title":{"rendered":"Reliance did not acquire Future Group companies."},"content":{"rendered":"
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Reliance did not acquire Future Group companies. <\/span><\/span><\/p>\n

But Reliance\u00a0acquired Assets of Future Group<\/span><\/span><\/p>\n

There is one of two ways any acquisition happens.<\/p>\n

1) Asset Purchase Through Asset Purchase Agreement<\/p>\n

The acquirer acquires assets of a company. Leave the company shares with promoters and investors.<\/p>\n

In this case liabilities and any pending lawsuits of the existing company would not get transferred to the acquirer.<\/p>\n

So, Acquirer Pays purchase proceedings to the Acquiring company. Not to shareholders.<\/p>\n

2) Share Purchase Through Share Purchase Agreement<\/p>\n

The acquirer acquires company shares and owns the company including assets and liabilities. Which means all liabilities also transferred along with the company to the acquirer.<\/p>\n

The purchase proceedings are transferred directly to shareholders.<\/p>\n

In this case, Reliance and future group executed an Asset purchase agreement not a share purchase agreement.<\/p>\n

Fun Fact: Can you believe, In 2005 I signed my first Asset Sale agreement with New York Based company to sell my First Business (Calling Cards E-commerce site) Without knowing the difference between an Asset purchase agreement & Share Purchase agreement at that time. Who cares I was just 26 yrs old then?<\/p>\n

#Acquisitioon<\/a>\u00a0#Founder<\/a>\u00a0#Entrepeneurship<\/a>\u00a0#startups<\/a>\u00a0#Exit<\/a>\u00a0#founderstories<\/a>\u00a0#serialenterpreneur<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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    Reliance did not acquire Future Group companies. But Reliance\u00a0acquired Assets of Future Group There is one of two ways any…<\/p>\n","protected":false},"author":4,"featured_media":842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-related","wpcat-7-id"],"_links":{"self":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/comments?post=841"}],"version-history":[{"count":3,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/841\/revisions"}],"predecessor-version":[{"id":848,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/posts\/841\/revisions\/848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/media\/842"}],"wp:attachment":[{"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/media?parent=841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/categories?post=841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakamsani.me\/blog\/wp-json\/wp\/v2\/tags?post=841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}