Stock vs. Asset Sales

Selling the shares you hold in a company vs. selling the assets out from the under the company can make a big difference in taxes, who assumes certain liabilities and what happens to certain contracts.  This module describes (in very visual terms with a stack of cash and Matchbook toys), what really happens in a stock sale vs. an asset sale and why buyers typically prefer asset sales.

We then explore some challenges with each, such as the assignment of customer agreements with an asset sale, and change of control clauses in stock sales.