Asset Sales Versus Stock Sales

Asset sale or stock sale? The seller favors one; the buyer favors the other. Why? The distinction between asset sales and stock sales seems simple, but the differences are important, because each type of sale has its advantages, although one side may benefit financially more than the other depending on the type of deal. The key is knowing whether an asset or stock sale is right for your particular situation. Andrew Gantman, CPA and owner of Gantman & Associates in Los Angeles, joins us for an important discussion of these two types of sales, including understanding the kinds of income your assets generate — regular income or capital gains — and the potential tax implications in an M&A transaction.