Asset Purchase Agreement Vs Acquisition

Several benefits of buying shares appear below: the first thing to do is to ask yourself what you are looking for when acquiring. If it`s the company, and you`re satisfied that its debts are easy to deal with, then a direct share purchase can be the way. If this is a particular aspect of the business or if you are concerned about some of the company`s commitments, buying assets will obviously be more attractive. By buying assets rather than shares, the buyer avoids the problems of minority shareholders who refuse to sell their shares. The purchase of shares consists of the purchaser purchasing the shares of a company that holds all the assets that constitute the transaction covered by the share purchase agreement. An important difference from the acquisition of assets is that the acquirer becomes the owner of the company that owns all the assets with a share purchase. This has both beneficial and negative effects. What is positive is that the buyer will avoid the need to follow different procedures to transfer certain legal investments separately, but a potential disadvantage of using a stock purchase is that the buyer cannot be as selective as he could if he used the acquisition of assets. While the buyer may choose not to assume responsibility for certain debts if the use of an asset acquisition with the purchase of shares means that the buyer assumes the debts of the target entity if there are any. If you would like to discuss how best to structure your acquisition, including some options that have not been described in detail in the article above, please contact someone from our business team to help.

Please contact us at [email protected] or call us on 029 2009 5500 to speak to one of our employees. The assets of the sales company must be renamed in the name of the buyer. This is not necessary in case of stock booking. The advantage of a sale of assets is that it allows the parties to show great flexibility in the inclusion of assets and liabilities in the transaction.

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