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Unauthorised Use of Dalma Capital’s Name and Details

Dalma Capital Management Limited (the “Firm”), is duly incorporated in the Dubai International Financial Centre (DIFC) and authorised and regulated by the Dubai Financial Services Authority (DFSA).

The Firm has become aware that an unauthorised entity operating under the name “D’ Finance Capital” has been misusing the Firm’s details and falsely claiming association with the Firm.

The Firm hereby confirms that:

  • it has no affiliation or connection whatsoever with “D’ Finance Capital” or any of its representatives,
  • any representations, communications, or activities undertaken by this entity are unauthorised, false, and misleading, and
  • it does not accept any responsibility or liability for dealings with this entity, nor for any losses or damages arising from reliance on its claims. 

In line with its obligations as a DFSA-authorised firm, the Firm has:

  • notified the DFSA of this unauthorised use of its details;
  • reported the fraudulent website and materials to the relevant authorities; and
  • enhanced its security protocols to protect its office premises, employees, and clients.

Members of the public, clients, and counterparties are advised to exercise caution and verify any communications claiming to be from the Firm by using only the official contact channels listed on our website: www.dalmacapital.com.

Suspicious communications should be reported immediately to compliance@dalmacapital.com.

The Firm remains fully committed to its obligations under the DFSA framework and to protecting the interests of its clients, shareholders, and stakeholders.

News & Announcements

Asset Sales vs. Company Sales in M&A: Key Differences, Factors, and Pros and Cons

Dalma Capital

30 March 2023

By Zachary Cefaratti

Mergers and acquisitions (M&A) transactions can take various forms, with asset sales and company sales being two of the most common structures. Each approach has its unique characteristics, advantages, and disadvantages, making it essential for both buyers and sellers to understand their implications.

Key Differences between Asset Sales and Company Sales

  • Asset Sale: In an asset sale, the buyer acquires specific assets and liabilities of the target company, rather than the company itself. In most cases, the asset is acquired ‘debt-free, cash-free’ without any liabilities. The assets acquired may include tangible assets, such as property and equipment, and intangible assets, such as intellectual property and customer relationships.
  • Company Sale: In a company sale, the buyer acquires the entire target company, including all its assets, liabilities, and equity interests, however in many cases for smaller deals the company will be acquired debt-free and cash free. The deal is typically accomplished through a share purchase or a merger.

Factors Influencing the Choice between Asset Sales and Company Sales

Several factors can influence whether a deal should be structured as an asset sale or a company sale, including:

  • Tax considerations: The tax implications of each structure can vary significantly and may favor one approach over the other for both the buyer and the seller. This is often the key driving factor.
  • Liability concerns: Asset sales can provide buyers with greater control over the liabilities they assume, while company sales may involve the transfer of unknown or undisclosed liabilities.
  • Regulatory requirements: The regulatory environment and industry-specific considerations may impact the choice between an asset sale and a company sale.
  • Deal complexity and speed: Asset sales can be more complex and time-consuming to negotiate and execute, while company sales may be more straightforward and faster to complete.

Advantages and Disadvantages of Asset Sales

Advantages:

  • Flexibility: Buyers can selectively acquire the assets and liabilities they are interested in, providing greater control over the transaction.
  • Liability protection: Buyers can limit their exposure to unwanted or unknown liabilities from the target company

Disadvantages:

  • Complexity: Asset sales can be more complex to negotiate and execute, as they involve the identification and transfer of specific assets and liabilities.
  • Potential tax disadvantages: Asset sales may result in higher taxes for the seller due to the taxation of gains on individual assets, or potentially transaction taxes such as GST.

Advantages and Disadvantages of Company Sales

Advantages:

  • Simplicity: Company sales are often more straightforward, as the buyer acquires the entire company and its associated assets, liabilities, and equity interests.
  • Tax benefits: Company sales may offer more favorable tax treatment for the seller, particularly in cases where the transaction is structured as a stock purchase or tax-free merger.

Disadvantages:

  • Liability exposure: Buyers may assume unknown or undisclosed liabilities from the target company in a company sale.

  • Limited flexibility: Buyers have less control over the specific assets and liabilities they acquire in a company sale, which may result in the acquisition of unwanted or non-core assets.

 

To know more about Zachary and his insights, please click here.

To access the Article, please click here.