what happens to the company’s liabilities in an asset sale?

What is the benifit to the buyer&seller of an asset sale. Conversely what is the downside to each?

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    As for the companies debts and liabilities, during an asset sale the buyer usually will not be responsible for existing debts of the business unless the buyer agrees. That is not the case with an entity sale “usually” the buyer will take on all liabilities of the previous business after the sale.

    But depending which direction the deal goes, if giving a choice most shareholders or members of the company would accept responsibility for some liabilities… bank loans, leases, CEO news Corvettes. – IMO

    But “usually” the shareholders are left holding the bag. So if that is the worst that can
    happen…. Any return on your investment would be a blessing. For more info take a look at http://www.equities.com

    Good Luck

    Answered by: EQUITIES on Mar 30, 2011 Reply

  2. Thumb up
    0
    Thumb down

    As for the companies debts and liabilities, during an asset sale the buyer usually will not be responsible for existing debts of the business unless the buyer agrees. That is not the case with an entity sale “usually” the buyer will take on all liabilities of the previous business after the sale.

    But depending which direction the deal goes, if giving a choice most shareholders or members of the company would accept responsibility for some liabilities… bank loans, leases, CEO new Corvettes. – IMO

    But “usually” the shareholders are left holding the bag. So if that is the worst that can
    happen…. Any return on your investment would be a blessing. For more info take a look at http://www.equities.com

    Good Luck

    Answered by: EQUITIES on Mar 30, 2011 Reply

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