Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.
One of the two ways to structure an acquisition for legal purposes in which the buyer purchases the individual assets of the seller, as opposed to purchasing the stock held by the seller.
The two main types of acquisitions are a purchase of the seller’s entity or stock, or a purchase of the seller’s assets, known as an asset deal or sale. Asset deals are more common for smaller businesses. Asset deals are less risky for buyers because a buyer is not risking inheriting potential, unknown liabilities.
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