This form is an Asset Purchase Agreement. The buyer agrees to purchase from the seller certain assets which are listed in the agreement. The form also provides a listing of certain assets which will be excluded from the sale. The form must be signed in the presence of a notary public.
Sales Of Assets Business Advantages And Disadvantages In Philadelphia
Category:
State:
Multi-State
County:
Philadelphia
Control #:
US-00418
Format:
Word;
Rich Text
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The parties must choose between an asset sale and a stock sale. Both types of sales have advantages and disadvantages.Asset Sale– Advantages. No legal liability for the corporation prior to the purchase. Businesses generally file for bankruptcy because of financial challenges or operational issues. Disadvantages of an Asset Purchase Compared to a Stock Purchase. The selling company's assets must be re-titled in the buyer's name. Generally speaking, asset sales take longer to complete than stock transactions, and the business may receive a higher fair market valuation. Deciding whether to proceed with an asset sale or a stock sale is one of the pivotal choices you'll face when buying or selling a business. Asset sales and equity sales offer unique advantages and disadvantages that must be carefully considered when deciding to sell a business.