Selling a Business Attorney in Hackensack, New Jersey

Sale of Stock Agreement vs Sale of Asset Agreement

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In a stock agreement the shareholders are selling their shares, in an asset agreement the company is selling its assets. So one might think that in the stockholders agreements since it’s shareholders that are parties the company wouldn’t be making all kinds of representations about itself. But de facto, the buyer’s lawyer will make the two of them quite similar. To somebody who’s not sophisticated they’ll look quite similar, but for purposes of our discussion today, I’d like to talk as if it’s an asset agreement, which is more common.

New Jersey business transactions attorney, Harold I. Steinbach, explains how in a stock agreement, the owners are selling shares, and in an asset agreement the company is selling assets.

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