There are generally two ways to expand your business and acquire part or all of a competitor or another business: a stock purchase and an asset purchase. The stock purchase is used to purchase the company as a whole. You will own all aspects of the company including its customer base, intellectual property, as well as important assets such as governmental contracts and real property. The potential challenge of a stock purchase is that it includes all of the debts of the company, as well as any contingent liabilities that might arise.
An asset purchase is a separate and distinct strategy from a stock purchase. In an asset purchase, Allen Barron attorneys carefully structure the agreement to allow you to purchase and take title to the specific real estate, equipment, vehicles or customers that you wish to obtain, without assuming the debts and liabilities of the other company.
Each strategy has unique advantages and disadvantages, and the decision of how to structure the transaction is often based upon the unique nature of the associated business, and the tax implications of the transaction for all parties involved. Allen Barron is uniquely positioned to guide you successfully through any business acquisition or merger. Our unique blend of services including legal, tax, accounting and business advisory expertise supports and informs every aspect of your decision, ensuring that the transaction is structured in the way that best supports and protects your interests.
If you are considering the purchase of a business, or a stock purchase or asset purchase we invite you to contact us for a free consultation at 866-631-3470. Learn about the valuable insight our professionals can provide to help you structure a transaction that will help your company to take the next step in your profitable growth.