Smart Investors Buy Assets, Not Equity

by an investor from Western State College

1 year ago

In an equity purchase, the investor assumes the assets AND the liabilities of the company they just bought. But if the investor only buys the assets, then the liabilities stay with the owners of the purchased company..

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professional from University of California, Berkeley - Haas School of Business

You're spot on Tony...when I was in the corporate world, I acquired several companies; asset only acquisitions. I was only interested in the product line. Never had an issue losing any contracts as stated by Michael. If the customer like the product, they'll purchase it.

1 year ago | like reply | 0 likes

searcher from University of Arkansas at Fayetteville

Interesting info

1 year ago | like reply | 0 likes

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