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December 22, 2017

Day 22 -How about a business purchase from Father Frost?

As the world population is increasing steadily, Santa will also have more children to remember for Christmas. Thus, the business of Santa needs to grow. Santa and his fella in Russia, Father Frost ( Fin: Pakkasukko ) are intending to start negotiations around a business purchase right after Christmas and New Year.

In a business purchase the purchase target is the business or part of the business of the seller. In a share purchase instead, the target would be the shares of the seller. As Father Frost will need to continue delivering presents to kids in Russia, a business purchase would be a preferable way of executing a transaction with Santa. This way both Santa and Father Frost could continue their businesses in remembering children around the world during Christmas and New Year.

To start negotiations, Santa will first start a due diligence process in which Santa, his elves and external advisors will evaluate the business of Father Frost from legal, financial and tax point of view in order to familiarise with the business and to recognize any possible risks related to the business of Father Frost. As the business purchase would be a cross-border transaction, both lawyers from Finland and Russia would probably be engaged. Fondia belongs to an international GGI network and would be happy to help Santa find good lawyers in Russia, too. After the due diligence process Santa and Father Frost would start negotiations of a business purchase.

What could this business then be? Would Santa be purchasing a carpenter workshop needed to produce toys, or perhaps a chocolate factory, a puppet workshop or a sewing factory? I guess we will need to stay tuned and see. Maybe we will know by the next year's Christmas!