Buying or Selling a BusinessThere are two ways to buy a business: asset purchase and stock purchase. The two sets of terms are two sides of the same coin. Both carry different legal implications for buyers and sellers. The lawyers at Fisher Stone have you covered! Let us guide you on buying or selling of a business, company, or corporation in New York City.
Asset SaleMake sure the right clauses are there to protect you
Stock SaleMake sure you know what you are purchasing or selling
3 Easy StepsBuy or sell a business with our trusted attorneys
Step 1Answer questions about your business and your goals.
Step 2An attorney will draft, review, and assemble all your documents.
Step 3We will have your closing and continue building your legacy.
Sale of a Company
Asset Sale vs. Stock Sale
- Individual assets and liabilities are sold
- Generally preferred by buyers
- Possession of legal entity is retained by seller
- Purchaser buys equipment, goodwill, trade secrets, etc.
- Owner’s shares are sold
- Generally preferred by sellers
- Portion of legal entity becomes property of buyer
- Separate and individual conveyances are not necessary
How Sales Benefit Buyers/Sellers
There are a variety of reasons that certain types of sales benefit different parties of the transfer. An asset sale, for instance, provides tax advantages for the buyer, allows them to choose which liabilities they’ll assume and can force minority shareholders to accept terms they may not be agreeable to.
On the other hand, stock sales benefit sellers because they’re able to transfer liabilities without buyers “handpicking” them. Sellers also aren’t forcing their shareholders into deals they don’t necessarily want. Keep in mind, though, that there is no perfect answer. When your contracts, agreements and assets come into play, either of these sales could be ideal for your company.
Legal Help Selling Companies in NYC
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If you have any questions, our attorneys would be happy to answer them for you. Speak with an attorney today.