Asset & Stock Sales

If your business isn’t traded on a public stock exchange, often you have to sell some or all of your assets, including equipment, customer lists or inventory.  With these types of sales, the purchaser creates a new company, and generally does not assume the seller’s liabilities. Publicly traded companies and some larger private businesses participate in a stock sale, stock swap or a merger, when ownership in an existing business transfers or exchanges between the parties.

The tax structure of the sale is critical. There is a significant difference between capital gains tax rates and ordinary income tax rates. The depreciation schedules (and the buyer’s ability to deduct this expense) varies for different types of purchased assets. A team of professionals is essential to negotiating and structuring your deals.