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Edmonton Business Broker – Tip of the Day

Share Sale vs Asset Sale

When buying an existing business you may have the option of either purchasing the shares of the business or the assets of the business. If you purchase the shares of the business, you inherit the debts and liabilities of the business at that time. You also have an exposure to any debts and liabilities which may arise in the future (even if they relate to events before the shares were acquired).

If you are purchasing shares in the company it may be prudent to negotiate a legal indemnity with the vendor to cover any debts which may arise.

Performance Business Brokers has experience in negotiating the sale of small to medium businesses. We understand the commercial considerations of different sale options, and can advise business owners on the most appropriate structure.

Contact us today for a confidential discussion about your business.

Presented by Dwight Lester, Performance Business Brokers

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