Buying shares is easier in the concept than buying assets. Therefore, in most cases, it is essentially a simpler, less complex transaction. Since an asset acquisition involves the acquisition of the underlying assets and rights of the target transaction and not the entity to which they belong, this transaction structure can be used to acquire an entity that does not have the legal personality of its own. B, for example, a transaction by an individual contractor or a company or part of the activities of a registered entity. The most important difference between buying shares or acquiring assets is the ability to control what is purchased only assets when buying, so that the buyer can only choose the best assets and leave behind all the liabilities he does not want. On the other hand, the company`s own legal personality when buying a company`s shares means that the buyer has no control over what is obtained by the purchase transaction. A share deal is the acquisition of shares and shares of a company that involves the overall transfer of all the assets and liabilities of the company in a single transaction. By this method, the contractors (sellers) and the buyer of the object of the sale are only one asset: the shares or shares. By purchasing shares, the buyer acquires the shares of a company from the shareholders and once they have been transferred, the ownership of that company is transferred to the buyer – and includes all assets or liabilities. Since the buyer is not a „cherry picker,“ the buyer`s potential to assume debts is much greater. The above are just a few of the factors that should be taken into account when deciding whether to buy shares or purchase assets. When buying or selling a business, it is important to involve consultants at an early stage (including lawyers and accountants) to ensure that all circumstances are carefully considered and that the right buying/sale structure is chosen. The main document related to the sale of shares is a share purchase agreement (SPA) that defines the conditions under which the purchaser buys the shares.
SPAs can often be quite long, based on the complexity of the business that is managed by the company, and whether the counterparty of the business is particularly high. When the shares of the company that run the business are acquired, it is normally the buyer`s lawyers who prepare the first documentation. This is because there will be important guarantees and compensations in the documentation to protect the buyer, which makes it useful for his lawyer to prepare them. In the case of an asset sale, the seller remains the rightful owner of the business, while the buyer acquires individual assets of the business, such as equipment, licenses, goodwill accountingA loss of goodwill value occurs when the value of goodwill on a company`s balance sheet exceeds the book value verified by the legal account controllers, resulting in amortization or loss of value. In accordance with accounting standards, the good incorporation must be taken care of as an asset and evaluated annually.