Selling your small business can be an equally exciting and daunting task to undertake. There are a variety of legal complexities in addition to various tax and practical considerations. Today’s post highlights one of those legal complexities: whether to structure the sale as a stock sale or asset sale. We’ll explore some of the key features and distinctions between the two types of sales.

Selling Your Business Through an Asset Sale
In an asset sale, the purchaser is not only buying the assets but also the liabilities of the business. The seller will retain possession of the legal entity, e.g. Joe’s Hardware LLC, and the buyer purchases the individual assets of the company, including equipment, inventory, fixtures, licenses, goodwill, trade names, etc….

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You’re tired of the stress and financial pressures of running a small business. You’ve considered your exit options. You’re ready to sell out and cash in. You’re waiting for the potential buyers to line up at your door ready to pay your asking price. If this is your approach, you’ll likely have a tough time selling your business. The reality is that selling your business requires a lot of work. Today’s post details some of the considerations and steps you can take to better position your business for a successful acquisition.

The Bigger You Are, The Less Options You May Have
Counterintuitive, I know. However, consider how many people there are willing or able to pay $1 mm for a small business….

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