The drawbacks for a seller mainly center around taxes. Asset sales and equity sales offer unique advantages and disadvantages that must be carefully considered when deciding to sell a business.In an asset sale, the seller may face double taxation. Intangible assets may be subject to capital gains tax. This article highlights the advantages and disadvantages of each. Advantages of an Asset Sale. Asset sales are generally more favorable to buyers, and stock sales are more advantageous to sellers because of the way each is treated for tax purposes. An asset sale will likely result in a combination of gain taxed at both ordinary and capital gains rates, depending on the nature of the individual assets. Each sale has different pros and cons.