Buying a Business – Asset or Stock Purchase? — Illinois Tax Attorney

When making the decision to purchase an existing business,  the buyer must determine whether he or she is going to seek to purchase the assets of the business, or the stock of the business entity.  An asset purchase involves the purchase of the selling company's assets -- including facilities, vehicles, equipment, and stock or inventory.  A stock purchase involves the purchase of the selling company's stock only.

A business broker, attorney, and CPA can advise a prospective buyer on the advantages and disadvantages of these alternatives, but the final decision is the buyer's. This article offers a few insights into that decision.

Buying a Business – Asset or Stock Purchase? 

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