An asset sale is a business sale structured as the buyer purchasing the company's individual assets, such as equipment, customer contracts and goodwill, rather than buying the legal entity itself. It lets the buyer avoid inheriting unknown liabilities and lets the seller's tax treatment vary by asset type. Most small business sales are structured this way rather than as a stock sale.
Why it matters
How the sale is structured, asset or stock, changes what liabilities you keep and how the proceeds are taxed.
General information, not legal or tax advice.