Can anyone help me understand the impact of a stock sale vs an asset sale for a business valued at $4M that has assets of $500-750k from the perspective of a buyer? Since the majority is Goodwill, would there be any significant tax savings in an asset sale?
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I disagree with the comments that low asset automatically, or more frequently, implies Asset. Majority of my low asset businesses have been Stock sale for non-tax reasons.
If a business has low assets., then step-up is low anyway, thus goodwill is high. In Stock you can write off goodwill.
As Bob Shafferly said there are many factors for Stock vs Asset.