Gutwein Law can help your business through all aspects of the sale or purchase whether you are looking to grow your business by acquiring a competitor, start a business by buying an existing company, or sell your business. We can add value to a merger or acquisition by assisting purchasing clients in deciding whether to buy assets or stock, as well as selling clients in analyzing asset versus stock sales.
Tax consequences are also very important in this decision. Generally, sellers prefer stock sales because of lower capital gains tax on the sale proceeds while buyers prefer asset sales because of the ability to step up the depreciable basis in assets. Our attorneys can help you understand whether an asset or stock transaction best fits your needs.
The chart we have created describes some of the differences between asset and stock purchases based on a variety of factors. If you still have questions after you read our chart, please contact one of our experienced attorneys.