Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Asset Deal / Asset Sale / Asset Transaction

Definition

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.

See Also

Stock deal.

Tips

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.

Related Resources

Selling Your Business | Asset vs. Stock Sale