Advantages and Disadvantages of Asset Sales for Buyers
Following are several advantages and disadvantages of asset sales for buyers:
- The buyer does not inherit any liabilities of the seller, including employment and tax liabilities;
- The buyer is not required to hire any employees of the seller, but may offer them employment;
- Assets acquired may be depreciable;
- The buyer does not inherit any negative reviews; and
- The buyer establishes a new clean credit history.
- The buyer must hire employees,
- The buyer must obtain any required licenses,
- New credit must be established,
- A new lease for the premises must be negotiated and deposit paid,
- New vendor contracts must be negotiated,
- The buyer may be required to comply with the Bulk Sales Law, and
- Operating capital will be required.
This is not intended to be legal advice. For legal advice, consult an attorney with business sales experience.