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Successful Acquisitions by David Braun

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STOCK DEAL VS. ASSET DEAL

If, at this point, you’ve determined whether the sale will be an asset deal or a stock deal, you can also include those details just after your section on price. As the buyer, you should have an idea of which you prefer, particularly since the tax implications could significantly alter what you would really be paying. Figures 11-1 and 11-2 show the basic differences between a stock deal and an asset deal. In a stock deal, you take ownership of the entire company, including all its assets and all its liabilities. In an asset deal, you are acquiring specific components that hold value for you. In Figure 11-1, you can see that the buyer is paying the stockholders, so that the entire company is acquired. In Figure 11-2, ...

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