Comparison between share sales and asset sales in acquisition for the buyer (Securing Finance)

Comparison between share sales and asset sales in acquisition for the buyer (Securing Finance)
Whether the transaction proceeds as a share purchase or an asset purchase could depend on the buyer's financing plans. If the buyer plans to borrow money to pay for the acquisition, it might want to use the assets of the target company as collateral for the loan. In many nations, it is against the law for a business to provide direct or indirect financial support to someone who is buying or attempting to buy shares of the business. If the acquisition proceeds as a share acquisition and the target is a public company, according to the applicable provisions of English law, such a charge over the target company's assets would be prohibited under the CA 2006 as it would constitute financial assistance by a company for the purchase of its own shares.