Asset Sale versus Stock Sale

By Hoke - Last updated: Monday, September 3, 2012 - Save & Share - Leave a Comment

The Asset Sale is the favored means of acquiring a business. This is the form of sale in 95% of business sales. This is in lieu of acquiring the Corporation Stock. With an Asset Sale the buyer essentially acquires the Equipment, Furniture, Fixtures, Lease, Customer List, Inventory, Licenses, Permits and Trade Name. The employees are terminated by the seller and hired by the buyer. All of the employees are new employees with the buyer without seniority. The buyer may choose not to hire certain employees.  Unlike with a Stock Sale an Asset Sale does not acquire Accounts Receivable, Accounts Payable or Cash. Most importantly, with an Asset Sale, any liabilities such as unknown pending lawsuits and employee liabilities stay with the seller’s corporation.

We Provide Buyer Support!

Whether you would like full broker representation or an advisor who is a phone call away, having an expert in your corner can make a profitable impact on your acquisition. If the listing broker will cooperate, we can represent you at no cost to buyer. If the listing broker will not cooperate we may be able to quote a reasonable buyer paid commission. We can also work with a consulting fee which can be reasonable if the buyer has located the acquisition themselves. An opportune time to bring us in is prior to written offer or during the acquisition process. Sooner is better since it is easier to avoid problems than to fix them. Call Hoke Nagahori at 310-941-2230 or email us at our contact page for a no-charge consultation and quotation.

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