Asset Sale vs. Share Sale


[Intro Music] Hi! Welcome to the Pacific M&A and
Business Brokers video blog. My name is Andrew Brown. When considering selling your business, a fundamental consideration will be the decision as to whether your offering
will be structured as an asset sale or a share sale. Fundamental to be making this
decision are the questions: “Is my business incorporated?” “Am I eligible for a once in a lifetime federal capital gains tax exemption on the sales proceeds?” “Does my current share structure maximize on that tax exemption?” In Canada, a shared sale is advantageous to sellers who have not previously utilized their once in a lifetime federal capital gains tax exemption. An asset sale in Canada
where the company holds a reasonable amount of capital assets, it is more
attractive to the buyer because it often provides the buyer with an opportunity
to restructure asset values, thereby taking advantage of their increased tax
bases. As a seller, it is important to bear this in mind, as this may not impact
the selling price; however, it could impact the money that’s left in your
pocket. Want to know how we can help you throughout the entire selling process? Talk to us at Pacific M&A and Business Brokers where knowledge, experience, and
trust come together.

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