Structuring The Transaction
- Topics:
- Management Buy out
- Tags:
- American Capital,
- Asset,
- Asset Management,
- Asset Transaction,
- Business Operations,
- Operational Planning
- Source:
- American Capital
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Overview: From the executive summary: ‘The purchase and sale of a company can be structured in one of two basic formats: purchase of the assets of the selling corporation, or purchase of stock of the selling corporation. In an asset transaction, the assets to be acquired are specified in a contract. Practices vary from industry to industry, but in general, all assets of the company except cash convey to the buyer. Selling corporations use the proceeds from the sale to liquidate short-term and long-term liabilities. This means that the buyer purchases all of the company's equipment, furniture, fixtures, inventory, trademarks, trade names, goodwill, and other intangible assets. An asset transaction is generally advantageous to the buyer.’ The paper explores the issue in detail.
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Format: HTML | Date: Jan 2003 | Pages: 1
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