Asset Sale vs Stock Sale

One of the biggest conflicts that exist within transactions is the type of deal you’re doing - asset sale or stock sale. Buyers typically prefer assets and sellers prefer stock sales. The key for any acquisition entrepreneur is understanding the big differences between both these types of sales.
In this piece, I’ll help you navigate through those differences and elaborate on the benefits associated with both so that you can make the best decision.
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Walker is a serial acquisition entrepreneur, bestselling author, and M&A advisor. He acquired seven companies over ten years and co-founded several startups. His bestselling book, Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game, released to critical acclaim including being recognized by Forbes as “one of the top 7 books all entrepreneurs must read,” and is currently being used in many universities. The Acquisition Lab, offers buy-side M&A services for first-time financial buyers in a do-it-with-you service, providing information, coaching, tools, and community. Read more here: acquisitionlab...

[@MarthaMoreno-p9h]

What a great video, thank you

[@BuyThenBuild]

Well thanks so much for the kind words!

[@MarthaMoreno-p9h]

@@BuyThenBuild you’re welcome 😊

[@Luke_Mitchell]

Walker, these videos are great man! Keep it up!

[@BuyThenBuild]

Thanks Luke!

[@dbsk06]

6:56 stock sale: supplier contract that is not transferable. Stock sale => tax benefits to the seller

[@richreviews1279]

So All together it's better to buy to carry out an Asset Purchase against a Stock Purchase?

[@BuyThenBuild]

Less risk to the buyer by far. Also more common. Over the last 16 years and hundreds of transactions in the sub-$25 million space, I've only really seen about a half dozen.

[@khalafismail3123]

Walker Deibel in the invitae selling most of its assets to Labcorp where are invitae's current shareholders will they be given new shares in labcorp or remain invitae's shareholders

[@BuyThenBuild]

Hi! Your question is confusing to me, but if I follow it correctly, if Invitae's shareholders are offered equity in Labcorp it would be part of the purchase agreement, but certainly NOT a default setting for shareholders to get equity in the new entity (Labcorp)

[@khalafismail3123]

@@BuyThenBuild hi sir thanks for responding I am INVITAE shareholder and now INVITAE is going through chapter 11 protection and they will try to restructure their debt and emerge form chapter 11 in the future Now they sold selected assets to Labcorp and to another company and doing a lot of things My question after the deal with Labcorp done What will happens to INVITAE shareholders Are we staying with INVITAE after emerging from bankruptcy chapter 11 Or because they sold many of their assets to Labcorp we will be compensated by Labcorp or given new shares from Labcorp if you kindly answer when you can and bless you for getting back to my question.

[@raelynt.7263]

How would this apply in a construction company business purchase? Wouldnt the business lose its bonding and licenses with the new entity?

[@BuyThenBuild]

Bonding would be addressed in the agreement while licensing would need to be managed int he transfer arrangement. This question has an extremely long and complicated decision tree of an answer depending on many variables. I would recommend you find a consultant or attorney to discuss.