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Asset / Entity Puchase
Are You Buying a Business?
Asset Vs. Entity Purchase
When acquiring a business, one of the first decisions you’ll face is whether to purchase the company’s assets or its entire entity. Each approach has its own advantages and considerations, and our experienced team at Private Corporate Counsel is here to guide you through the process with clarity and confidence.
An asset purchase allows you to acquire specific assets and liabilities of a company, rather than taking over the entire business. This means you can select valuable assets like equipment, inventory, or intellectual property, while avoiding unwanted liabilities such as debts or legal obligations. This approach offers greater control and can be tailored to fit your strategic goals.
Opting for an entity purchase means acquiring the entire company, including all its assets, liabilities, contracts, and legal obligations. This approach can simplify the transition, as existing contracts and relationships often remain intact. However, it also means assuming all existing liabilities, so thorough due diligence is essential.
Why It Matters
Strategic decision-making can make a long term impact on your business. Choosing between an asset and entity purchase can have significant consequences for your business. Here’s what’s at stake:
- Tax Implications
- Liability Exposure
- Operational Continuity