When It’s Time to Sell. . .

Once again, this is an area for both sides where experience is critical, and using third parties to assist and manage the process can be of great value to both buyer and seller.

pP: How should the transaction be structured to limit/eliminate any future issues/liabilities?

Hornell—Most transactions are structured as stock sales. This structure allows for the liabilities of the corporation to stay within the corporate entity, effectively passing to the new owner. In certain circumstances, the transaction can be structured as a stock sale for liability transfer purposes and an asset sale for tax purposes. The buyer can receive significant tax advantages through an asset purchase and thus, value can be created for both parties.