reply
by a searcher
4mos ago
from University of Pennsylvania
in San Francisco, CA, USA
I've heard through the grapevines that though legal liability is the primary reason to go asset sale, every other reason would lead you to stock sale (taxes and operational handoff). It is a pain to re set up systems and contracts in the asset sale process. Not impossible, but adds a lot of unnecessary complexity. I've also heard that your legal liability isn't fully shielded with the asset sale, but there's probably some gray area there.
reply
by a searcher
4mos ago
from INSEAD
in Bussum, Nederland
If you are considering asset sale this implies that there are assets in the transaction perimeter of the equity sale that you do not want. This seems to contradict the profile of a search appropriate target. You are not acquiring an ging concern that is able to carry the debt. I suspect this will cause issues for lenders.
If I wrong in my assumption, then still the asset sale is a more tedious process because each asset has to be described in the asset transfer deed