Q&A With Cortney: Stock Sale Versus Asset Sale
Q. I’ve heard about a few ways to go about buying a business. The two most common methods I’ve seen are stock sales and asset sales. What do those really mean, and is one better than the other? —Joe G., Lexington, South Carolina
A. An asset sale is the most popular type of sale performed by The Firm. This type of transaction allows a buyer to form a new corporation or limited liability company (LLC) that purchases the assets of the previous owner’s company. Both intellectual property and hard assets, such as customer lists, the business name, social media pages and websites, are included in this type of purchase.
A stock sale is a transaction where a buyer purchases the ownership interest in a company and all indemnification and obligations transfer from the previous owner to the new owner. Stock sales are less common than asset sales because legal, tax, and accounting issues can complicate these transactions.
It can be a challenge to decide which type of sale works best for you — but The Firm’s team of experts offers the information you need to make the best decision for you. Whether you’re a buyer or a seller, we offer guidance and support through even the toughest situations.
Cortney Sells, The Firm's president and founder, is an accomplished businesswoman and an expert in mergers and acquisitions. She leads a team of empowered professionals who share her passion for pairing owners of existing businesses with qualified individuals who continue the legacies of those businesses.
Do you have a question for Cortney? Send your questions related to buying a business, selling a business, or the fast-paced world of mergers and acquisitions to firstname.lastname@example.org.
- M&A Advisor or Business Broker?
- How to Sell a Business in 7 Easy* Steps
- The Firm Advisors: #1 in the World -- Again!
- Documentation is Key During This Time
- Small Business Debt Relief Program
- Work On Your Small Business (While You Aren't Working In It)
- Meet the Listing: Body Shop w/ Towing & Auto Repair
- Superstitions and Deal Killers
- Choosing Your Investments: Stock Market vs. Business Purchase
- Video: Deal Education
- Industry Spotlight: Advertising and Marketing
- Meet the Team: The Firm Advisors Office Tour
- Securing Your Business Against Ransomware
- M&A: What's an M, and what's an A?
- Location, Location, Relocation
- $20M in One Month
- Pet Care: A Recession-Proof Industry
- The Firm Named to BBB Honor Roll
- Firm Family Christmas
- Firmgiving 2019
- Cortney Sells on IBBA's Podcast
- The Firm Makes Inc. 5000
- M&A: The Industry Defying Gravity
- Have You Met Makayla?
- Dr. Lemberg's Pathway to Retirement
- Steven Makes His Mark in M&A
- Hot Off the Press - June 2019 Magazine
- All Good Things Take Time
- The Firm June Magazine Release Celebration
- The Firm Feels Good Doing Good
- Corner Kick Spoils our Swan
- Opportunity of the Week: A Business That Brightens Children’s Futures
- The Ins and Outs of Seller Financing
- Preparing for the Perfect Retirement
- The Firm Is Breaking Industry Records & Poised for Growth in 2019
- Simply the Best
- Competitor Analysis, Opportunities Listed
- Dentist to Dreamer - Hard Work Pays Off!
- Kansas City Tech Company Useagility Sells to First Tek
- 8th Year as Omaha's Best Business Brokerage
- Sellers: Why You Should Finance Your Buyers
- Summer Intern 2017 - Ameya Shelby
- Industry Forecast: Mind the Generational Gap
- 8 Things We Wish Every Business Buyer Knew Before Calling Us
- Selling Your Business: Getting a Proper Business Valuation
- Asset Sales or Stock Sales: Determining the Best for Your Business Transaction
- Why (and How) Business Owners Are Selling in 2017
- The Law of 3's - Choosing the Right Kind of Broker
- A Mutually Beneficial Relationship
- Reaching Out is Key
- Confidential Business Reviews
- A Change of Pace to Business Ownership
- Confidentiality is at the Core of Business
- Moving into the Boardroom
- Buying a Business vs. Starting Your Own
- Bringing Buyers and Sellers Together is Just the Beginning
- Client Interfacing in the Digital Age
- Four Questions Every Buyer Should Ask
- The Firm Outpaces Transaction Totals from Previous Two Years
- Faces of Omaha 2016: Face of Business Brokerages
- The Firm Business Brokerage Set to Double Sales within Seller's Market - MBJ 2014