
Common Business Acquisition Deal Structures Explained
Understanding how different deal structures work is essential for navigating business acquisitions. Asset purchases let buyers pick specific assets while avoiding most liabilities. Stock purchases, on the other hand, require taking on all liabilities but offer tax perks and ensure smooth operational transitions - especially valuable when contracts or licenses are hard to reassign. Lastly, earn-out agreements help bridge valuation gaps by tying part of the payment to future performance, aligning both parties' interests.