What are some commonly used techniques to transfer the business to outsiders?

Minneapolis attorney Sally Grossman discusses techniques that are often used to transfer the business to outsiders.

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When you transfer a business to an outsider, we’re always talking about a sale. I’ve never heard of anybody being willing to gift to someone who’s not family or not key employees, or even then it’s not usually a gift. So, we’re talking kinds of sales, and the kinds of sales are generally either asset sales or stock sales. And a stock sale, just like it sounds like, is a sale of the entity itself, so all that really changes after the deal is that a different company – a different person or entity owns the business, so it changes the shareholders. Whereas an asset sale, you actually sell the individual assets of the company, and there are advantages and disadvantages to each one.