Will this be a stock sale or asset sale?

Depends – An asset sale is not like a liquidation, but rather the sale of the assets of a business. Essentially a new owner starts fresh from the day of close, and a Seller shuts everything down – paying off all liabilities, etc. The benefit of an asset sale is that there are no contingent liabilities for both the buyer and the seller in the transaction. A stock sale is the sale of the stock/shares of the company of which the company owns the assets. In this case, liabilities will transfer to the new owner. There are many positives to each type of sale in regards to liabilities, tax implications, etc.

We suggest to have an open mind – depending on your business and the type of buyer that comes to the table, there may be benefits that will determine the type of sale.