The Differences Between an Asset and a Stock Purchase?
As a Hartford County, Connecticut Business Lawyer I get asked, what are the differences between a stock purchase and an asset purchase transaction? In a stock purchase transaction, you’re identifying the specific assets or parts of a business that you’re acquiring from another firm. These can include just the goodwill value of a company, its intellectual property, its accounts receivable, and/or its inventory. It’s also useful to use an asset purchase transaction when you want to avoid assuming certain liabilities of the seller. In essence it allows you to start with the assets of a seller with a clean slate.
A stock purchase transaction is very useful where some but not all of the owners of the seller are willing to sell. There are also certain tax advantages in a stock purchase transaction over an asset’s purchase transaction.