Advantages and Disadvantages of Asset Sales for Buyers

Following are several advantages and disadvantages of asset sales for buyers:




  1. The buyer does not inherit any liabilities of the seller, including employment and tax liabilities;
  2. The buyer is not required to hire any employees of the seller, but may offer them employment;
  3. Assets acquired may be depreciable;
  4. The buyer does not inherit any negative reviews; and
  5. The buyer establishes a new clean credit history.





  1. The buyer must hire employees,
  2. The buyer must obtain any required licenses,
  3. New credit must be established,
  4. A new lease for the premises must be negotiated and deposit paid,
  5. New vendor contracts must be negotiated,
  6. The buyer may be required to comply with the Bulk Sales Law, and
  7. Operating capital will be required.



This is not intended to be legal advice. For legal advice, consult an attorney with business sales experience.
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