STOCK PURCHASES

Our Mergers and Acquisitions team at the Law Office of Finley Stetson can assist in using a stock purchase to acquire a company. We are aware of which business sectors are more prone to stock purchases and which cases carry accelerated risk in terms of liability, outstanding tax issues and more.

What is a Stock Purchase?

With this type of acquisition, the buyer takes all, or a controlling share, of the legal entity that owns a business. An agreement, however, can carve out certain liabilities, obligations or assets that the parties wish to exclude from a deal.

Benefits

There are definite benefits of a stock purchase over asset purchases, which are another common way to take control of a company. First, a stock purchase is better able to streamline the day-to-day operations of a company. Second, unless change-of-ownership provisions exist, a stock purchase allows the new entity to take over existing contracts, licenses and permits without third party consent. Another advantage of a stock purchase is that buyers can often avoid paying transfer taxes.

Customized Decision

An asset purchase might be more advantageous in certain scenarios. The Law Office of Finley Stetson can advise you, whether you are buying or selling, on which purchase makes more sense for your situation. Please see our Asset Purchase Practice Area and discuss with our team which type of transaction will be optimal for you.

schedule a visit with us to strategize a game plan for all of your Stock purchase needs.

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The Law Office of Finley Stetson is standing by to take your call. Our team is dedicated to providing you quality legal services with a personalized approach. We look forward to assisting you.