Joe is the president and sole owner of a corporation. He invested a lot of money into the company. His accountant told him that he’d get better tax treatment and pay a lot less taxes if he considered the money a loan to the company and took his “compensation” in the form of loan repayments …Read more
The advantages to the buyer of purchasing assets, as opposed to buying stock, can be considerable. First, with an asset purchase transaction, as opposed to a stock sale, a buyer can go a long way toward eliminating the risk of being saddled with the target’s company’s unwanted and unknown liabilities. Second, if the target company …Read more
Perhaps the most common form of merger and acquisition is the asset purchase transaction. In this type of transaction, the buyer identifies the specific assets of the target company that it wishes to purchase and carves out those assets from the target’s portfolio of assets. Frequently, any liabilities associated with the purchased assets are assumed …Read more
Rare is the case where a business owner or an individual doesn’t know s/he’s in trouble and that filing for bankruptcy is an option. All too many people ignore the signs and wait until the last minute when the IRS is knocking on the door about to shut the business down, or the bank is …Read more
According to a recent Wall Street Journal survey mergers and acquisitions (M&A) are poised to increase in 2013. See the WSJ press release. The Journal’s survey, which tilts towards Silicon Valley and Northern California, indicates that deal makers attribute the potential for increased M&A activity throughout the remainder of 2013 and into 2014 to the …Read more