What Is A Stock Sale Agreement

This is commonly referred to as a cashless and debt-free transaction. Normalized net working capital is usually also included in a sale. Similarly, sellers are sometimes less responsible for future liabilities, such as product liability claims, contractual claims, employee lawsuits, pension plans, and benefit plans. However, the purchase contract in a transaction can transfer responsibilities to a seller. Buyer`s point of view In the case of share sales, buyers lose the opportunity to acquire an increased base in the assets and therefore cannot amortize certain assets again. The asset base at the time of sale or the book value determines the depreciation base for the new owner.