Asset sale vs share sale, what’s the better top online ways to make money deal for you

1. The share sale: you can sell the whole legal entity that is your top online ways to make money business – the complete package of assets and liabilities. The new owner will effectively step into your shoes. This is known as a share sale. It is done by you transferring all your shares in top online ways to make money the business over to the buyer. The transaction is between the buyer and you (not your company). The buyer makes payment to your personal accoun t (not to the company bank account). Once you’ve sold the shares you’ll no longer have any ownership of any part of top online ways to make money the business … Though it is sometimes agreed by both buyer and seller top online ways to make money for the seller to continue as a director for a top online ways to make money while.

2. The asset sale: in this scenario, the assets of the company transfer to the new owner, just the assets. All the liabilities of the business are retained in the top online ways to make money business. The deal is between the buyer and your company (not you) as the buyer is buying assets from the company. The money will be paid into the company’s bank account (not yours). After the sale you’ll still be the owner of the business but it top online ways to make money will be of a business that has little to no top online ways to make money assets. The business will still have liabilities though! You can use the money in the company bank account top online ways to make money to clear the liabilities – pay them off – and apply to companies house for a striking off (a closure of the company).

Share sales are more expensive when it comes to professional top online ways to make money fees ( how much do brokers / business transfer agents charge?) as there’s usually a lot more work involved. The buyer’s due diligence may raise questions that the seller can’t answer himself and which require professional advice. Employee contracts are often one such area and the seller top online ways to make money may need to get a written opinion from a lawyer top online ways to make money in order to reassure the buyer that the employee contracts top online ways to make money are within the law. There could be other areas in which the buyer needs top online ways to make money written legal assurances to confirm the business is operating within top online ways to make money the law.

Further, when it comes to the drawing up a final contract top online ways to make money for the transaction the legal fees are higher because of top online ways to make money the warranties, guarantees, indemnities and covenants that need to be inserted in the top online ways to make money contract to protect the buyer’s interests and provide him some reassurance. The negotiation of these terms and reaching final agreement on top online ways to make money the wording of the resultant contract takes a lot more top online ways to make money of the lawyer’s time and legal fees can soon escalate. While some lawyers offer a fixed fee arrangement, many realise that it’s not easy to estimate how long these matters will top online ways to make money take and so they charge by the hour.

1. In an asset sale the seller typically sets the price top online ways to make money to be beyond the total value of assets that appear top online ways to make money on the balance sheet. That’s because not all assets appear on the balance sheet. "Intangible assets" such as goodwill, trademarks, patents, website, customer database and all the other assets that are intangible top online ways to make money and can’t be touched or felt aren’t included in the B/S and the value of these assets, too, needs to be included in the price.

4. Whether to go for a sale of shares or a top online ways to make money sale of assets is not a choice that necessarily lies top online ways to make money with the buyer or the seller – it’s a matter for negotiation between the parties. A buyer who prefers an asset sale may be persuaded top online ways to make money to accept a share sale instead if the seller is top online ways to make money willing to make a large concession on price. Similarly, a seller who’s insisting on a share sale may be willing to top online ways to make money accept an asset sale if the buyer significantly increases his top online ways to make money offer price.

5. Sometimes circumstances determine the choice. If the most valuable assets in the business can’t be transferred to a new owner, as discussed in an example below, then the buyer may need to purchase the shares to top online ways to make money get his hands on those assets. On the other hand, if the seller is finding no takers for his offer top online ways to make money of shares, he may need to re-evaulate his plans and reconcile himself to selling the assets top online ways to make money instead.

Conclusion: there is no one right or wrong way to sell top online ways to make money a business. Once there’s a buyer and seller in place, all the terms of the deal are subject to negotiation. The price is going to be influenced quite substantially by top online ways to make money whether the sale involves a sale of shares (also referred to as stocks when talking about the shares top online ways to make money of large companies that are traded publicly) … Or a sale of assets. Except in small deals it is best to get professional top online ways to make money advice and guidance with negotiating these transactions.

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