Buying or Selling the Assets of a Business - Asset purchases are used to acquire specific assets and liabilities of the target company (oftentimes all the assets are acquired). After the deal closes, the buyer and seller maintain their corporate structures and the seller retains those assets and liabilities not bought by the buyer. This structure is often favored by buyers because it helps to limit liability and is often gives the buyer the most tax advantages. From the seller’s standpoint, asset purchases can also be the best format, especially if the seller wishes to retain a portion of the company as an operating business. One key is making sure the taxes resulting from the sale do not take too big a bite out of the proceeds from the sale.
Our attorneys have advised hundreds of companies and their owners on asset purchase deals. If you are considering selling all or a portion of your business, contact us at the beginning of the process. We will help you get the best structure possible while also working hard to get the deal closed.