Types of Business Acquisitions in Entrepreneurship Through Acquisition

Hello dealmakers! I am so excited to share more about the upcoming release of my new book, Entrepreneurship Through Acquisition: A Legal Guide to Buying a Small Business. This book shares my personal experiences and perspectives from navigating small business transactions. As you begin your entrepreneurship journey, there are many factors to consider when approaching an acquisition.

I want to share a little more about what to expect in our chapter on types of business acquisitions. This chapter explores the different types of acquisitions that can occur.

Asset Purchases versus Stock Purchases

What is the difference?

Asset Purchases

The buyer typically acquires certain assets. This provides flexibility because the buyer can select which assets to purchase and which liabilities to assume. However, this structure can sometimes result in higher transfer taxes and is best suited in select situations where the assets are easy to transfer.

Stock Purchases

The buyer acquires all assets, rights, and liabilities. This structure often allows for simplicity and an easier transition process. However, it requires more extensive due diligence to uncover any undisclosed liabilities or issues.

There are unique advantages and disadvantages to both purchase options. Deciding which structure to pursue depends on the specific deal and requires careful analysis and informed decision making.

To learn more about choosing the right type of business acquisition for you, join the waitlist for my upcoming book. When you join, you will receive complimentary access to the first chapter.

Join the waitlist now! https://www.deanstreetlaw.com/links