When buying or selling a business, one of the key issues to consider is how to structure the acquisition or sale. Two of the primary methods to be considered when purchasing a business are (1) asset purchase agreements or (2) stock purchase agreements. Depending on your business’ specific needs and goals, each method may offer specific advantages and disadvantages. Asset purchase agreements are just that, namely, the acquisition of the business through the purchase of that business’ assets, which could include things like inventory, equipment, accounts receivable, cash, capital, real estate, etc. Stock purchases are more indirect, and in such cases, a prospective buyer might be considering purchasing stock which can allow for control over the business’ operations, rather than direct ownership of assets- the assets, in such a case, are collectively “owned” by the shareholders, whoever they may be. In small closely held businesses, there could be less of a distinction between an asset purchase agreement acquisition versus a stock purchase agreement acquisition. Both methods should be carefully considered as each has specific benefits and ramifications for the seller and the buyer. To learn more about acquisition agreements for the purchase or sale of a business/corporation, please read this free resource.
As business lawyers and corporate counsel for small to large corporations, and with over four decades of combined experience, our law firm is here to deliver sound representation and guidance related to the sale of your business or purchase of another business. Edelboim Lieberman Revah Oshinsky PLLC can effectively guide you through the acquisition or sale of a business to protect your interests.