KSW Lawyers is thrilled to announce the expansion of our Abbotsford office
CONTACT
PAY BILL
LINKEDIN
CONTACT
PAY BILL
LINKEDIN
CONTACT
PAY BILL
LINKEDIN
Home
> Lawyer Content
> Blog title on how to fine the perfect lawyer
Link To Youtube
Recent Media
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Contact Us

Buying or selling a business? Consider your options.

December 7, 2022

Business Real Estate

Buying or selling a business? Consider your options.

There are two ways you can buy or sell a business – a share purchase or an asset purchase.

If the business is incorporated, the shares can be purchased. This allows the buyer to gain full control of the business and assume all of its assets and liabilities.

Alternatively, parties can do an asset purchase. This involves buying all the assets of the business, including tangible items like buildings and inventory and intangible items like copyrights and trademarks. Unlike a share purchase, an asset purchase lets parties exclude certain assets or liabilities.

As a general rule of thumb, sellers of a business tend to prefer share sales because of the favourable tax consequences for sellers (e.g., capital gains exemptions) and the ability to offload all liabilities of the business to the buyer. Meanwhile, buyers of a business tend to prefer asset purchases because of the favourable tax implications for buyers (e.g., ability to write-off depreciation of certain assets like equipment from the buyer’s taxable income) and the ability to pick and choose which assets or liabilities the buyer will assume.

If you have questions on this topic or any other legal matters, reach out to Aman Bindra

Tags
No items found.

Author

AMAN S. BINDRA

Lawyer

Aman Bindra and his team assist clients with all real estate, banking, and business matters, including purchases and sales of real estate and businesses, borrowing and lending, land development and construction, and leasing.

Aman has extensive experience working with individual, business and corporate clients throughout British Columbia. He regularly advises on and prepares agreements relating to land, asset, and share purchases, financings, and construction projects, and he assists with leasing, incorporations, partnerships, corporate reorganizations, and more.

Profile

Contact

Have questions? Need insight? Our team can assist you in examining your options and determining which path best suits your needs.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

*By clicking submit you agree you have read our Privacy Policy and Disclaimer
Disclaimer: the information you obtain at this site is not, nor is it intended to be, legal advice. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create a lawyer-client relationship. Please do not send any confidential information to us until such time as a lawyer-client relationship has been established. By checking this box you agree to receive communications from KSW Lawyers, which may include quarterly email Newsletters containing legal updates (may easily unsubscribe at any time).