Joan Young, Broker, CBI®, CBB®
Joan has helped me purchase two businesses and sell one over the last four years, and my experience more...
After running our successful business for nine years we decided it was time to sell. This created an unusual situation more...
Joan has helped me purchase two businesses and sell one over the last four years, and my experience has been more...
We interviewed three brokers before we made a final decision of
whom to use. more...
The decision to sell was difficult since we had the business over
20 years. We finally more...
I started this business from scratch and am pretty proud of what
I have done. Joan more...
Sunbelt, Greater Bay Area preserved my confidentiality, managed
the transaction professionally,
more...
You guys at Sunbelt do the best offering package of any brokerage
group that I have seen. more...
Should You Buy/Sell Assets or Stock?
Advantages & Disadvantages of an Asset Sale versus a Stock Sale from
a Buyers Perspective
Advantages
No legal liability for the corporation prior to the purchase
No liabilities for employees
Costs paid for the assets are depreciable
"Clean" credit, reputation, workers comp, etc.
Disadvantages
No established credit
Rehire the employees
Negotiate transfer of leases & contracts
New licenses
Operating Capital
Advantages & Disadvantages of a Stock Sale versus an Asset Sale
from a Buyers Perspective
Advantages
- Established credit
- Many times, no or minimal operating capital required
- Leases are in place
- Contracts are in place
- Employees are in place with worker’s comp rate established
- Licenses are in place
- No public notification of the sale
- No sales tax on the FF&E
- No deposits required
- Corporation, tax & employment numbers & documentation in place
Disadvantages
- Legal liability for the corporation prior to the purchase
- Assets are normally fully depreciated
- Sometimes stock is a hard sell to CPA’s & lawyers
For additional information, contact
Sunbelt Business Sales & Acquisitions.
Sunbelt of the Greater Bay Area
2001 Gateway Place, Suite 230E San Jose, CA 95110 Phone (408) 436-1900 Fax (408) 436-1996
6700 Koll Center Parkway, Suite 130 Pleasanton, CA 94566 Phone: (925) 600-0414 Fax: (925) 369-7270
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