Asset vs stock sale for 1-2M deal size

by a searcher from Columbia University - Columbia Business School

3 years ago

Hi All, I have a few deals in the 1-2M range and all with BS that show AR netting out AP and nill debt. Having said that, is there a preference on one or the other?

3 likes
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8 comments

searcher from Virginia Polytechnic Institute and State University (Virginia Tech)

even in an asset sale of "Company A", the new entity will be d/b/a as the "Company A", shouldn't the contracts and assets transfer over smoothly anyway? I am currently working on a deal now where the seller is looking for a stock sale to keep contracts in place for new owner. Other than tax implications for the seller, I am struggling to see why I should consider a stock sale.

11 months ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

Seller will most probably favor stock deal due to tax implications

3 years ago | like reply | 0 likes

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