The pandemic has been a very difficult time for most businesses and while the latest set of restrictions have now largely been lifted in England and Wales, the financial impact of the last two years is likely to last for some time. In such difficult...
If you are thinking of selling or buying a business an option available would be to conduct this through an asset sale.
When commencing an asset sale the buyer acquires the agreed areas of a business which is sometimes referred to as the target business. For example, a larger corporation could opt to only buy the operations of a business, without the purchase of the company as a whole or the individual shares. The sale can include the target’s contracts and good will or a defined portion of each.
It is a relatively flexible approach for buyers, allowing them to select particular assets instead of acquiring the business as a whole via the share sale route. For the buyer, this type of sale is sometimes seen as less risky, making the contract and transaction simpler.