Buying or selling companies can be complicated, but it all boils down to two primary transactions: stock sale and asset sale. Both have their fair share of pros and cons, but when is it better to buy and sell one over the other? What risks should be considered from a buyer’s perspective? What would benefit the seller the most? What would make both parties mutually benefit from the transaction?
Matt and Jean-Luc from our Advisory Team join us today to explain the benefits and drawbacks of making a stock sale versus an asset sale. They share the best time to make either sale and what buyers and sellers should consider regarding liability and taxes. They discuss the causes of a transaction falling through and how to avoid them. Matt and Jean-Luc also underscore why you should always prioritize what you want out of the deal, whether it’s a stock or asset sale.
“You should do the deal based on what you want to buy or sell. The main focus of the deal shouldn’t be stock or asset, but a byproduct of what you want to get out of the process.” – Jean-Luc Johnstone
This week on the Expensive Advice Podcast:
- The difference between stock and asset sales
- When it makes more sense to buy stocks over assets and vice versa
- Why a stock sale is better for both the buyer and the seller
- What to consider for a stock or asset sale
- Avoiding liability through an asset deal
- How taxes are handled in stock and asset sales
- The importance of having a legal team involved
- The causes of a deal falling through
Connect with Matt Smith and Jean-Luc Johnstone:
Turning Boring Money into FUN Money
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