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BUSINESS PURCHASE TYPES AND DEALS
 
When initiating a business purchase, you may be faced with these types of deals: the acquisition of its assets, or the acquisition of its stock. Note that a merger is a strategic type of stock acquisition. Basically, sellers have a preference to sell the stock of a business. In contrast, buyers have a preference to acquire the assets.

Buying the assets of a company rather than its stock provides the buyer some tax breather and the choice to purchase only the attractive assets and ignore the liabilities. The purchaser of a company's assets does not inherit the liabilities of the company, while the stock buyer does, which is a critical aspect in deciding which type of engagement is right for you.

Caution though, that there are some cases that can trigger you paving more preference to buying stocks over assets. Note that some ownership documentation are not transferable, so if taking advantage of these benefits is a priority, buying the stocks of the company becomes a necessity.

When dealing with due diligence, it is recommended to find out if certain contracts and ownership titles are transferable, and if such documentation will be maintained if company stocks are to be purchased. Legal documentation and ownership papers of many enterprises have particular articles stating restrictions on the sale and purchase of the company’s assets and stocks.

While most companies that are selling are in favor of having stock available for purchase, it is so because they get access to tax exemptions and better capital gains over the sale. Buying stocks can be carried out through direct stock purchases from all the selling stakeholders or through a merger.

A mergers and acquisitions engagement is directly influenced by regulatory policies and governing laws-the outcome of which is an enterprise being combined into another enterprise. After integration, the business of the combined enterprises continues in the form of one entity.

Mergers and acquisitions is usually accorded with tax exemptions, such is when the selling stakeholders accept stock in another enterprise, and are not required to pay right away the tax on the sale of shares. Also, unique to mergers and acquisitions is the benefit of not having each stakeholder necessarily approve the engagement. Should you need guidance on how to unravel the complexities of mergers and acquisitions engagements, please contact us.

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We are a multidisciplinary business consulting and investments firm represented in various countries across major economic regions. A privately held global organization established in [YEAR], NRC International focuses on delivering enterprise solutions for clients requiring business strategies, productive investments, financial stability, and continued growth.

NRC International, with its solid business, investments expertise, and reputable track record, is at the forefront of helping companies realize untapped growth and productivity potential.

NRC International’s key business is on strategic investments advisory and the provision of financial and risk products to enterprises that are keen in building and growing sustainability. With a venerable network of financial and investments experts, NRC International is able to facilitate the completion of a range of strategic services that add to enterprise value and income opportunities.

Through NRC International, you gain access to a team of highly skilled enterprise advisors, providing end-to-end solutions for many complex business challenges, with the right approach that will help you and your company cope with the increasingly demanding economic situation.

Behind the success of NRC International are the expertise, professionalism and dedication of its network of business and investments advisors working closely with every enterprise, supporting it by providing a comprehensive consultative approach to each and every business engagement. Our continued growth and success is ingrained in our results-oriented approach that regards meaningful relationships more than the engagements placing the client's interests on top of our priority.

 
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