How to Choose Between Share Purchase & Asset Purchase in M&A?

Mergers and Acquisitions (M&A) can be structured in two primary ways:

👉 Share Purchase

👉 Asset Purchase

But which one is right for your deal? Let's break it

Share Purchase:

1. Buyer acquires ownership of the company
2. All assets & liabilities transfer automatically
3. Simple continuity – employees, contracts, licenses stay intact
4. Buyer inherits hidden liabilities
5. Complex due diligence required

Asset Purchase:

1. Buyer selects specific assets & liabilities
2. No hidden surprises – cleaner transaction
3. Better tax planning flexibility
4. Requires individual asset transfer
5. Might need renegotiating contracts, licenses, etc.

Key Factors to Consider:

✔ Tax implications

✔ Legal liabilities

✔ Regulatory approvals

✔ Deal complexity & cost

✔ Business continuity

💬 Which structure would YOU prefer in an M&A deal? Let's discuss in comments 👇

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