Buying a Business
Asset Purchase vs. Stock Purchase by Marvin Wilcher
Preliminary Considerations
Having looked at the financial statements and gathered the basic due diligence information on the target company, one must then decide whether or not to purchase the assets of the company or the stock of the company. An asset purchase involves the purchase of the selling company's assets; including accounts receivables, inventory, vehicles, equipment and facilities. A stock purchase involves the purchase of the stock of the target company only.