Generally, it is more advantageous for the vendor to sell
shares of the operating corporation than to sell the assets of such
a corporation. From a liability perspective, the selling shareholder
has removed the hassle of dealing with any hidden liabilities that may
arise after the closing date (subject to an indemnification that may
be included in the share purchase agreement). There may also be a tax
advantage to the seller.
These advantages however do not apply to the Purchaser.
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The general opinions expressed herein are for information
purposes only and are not to be relied on. Individuals are encouraged
to seek legal advice as it relates to their specific fact scenario to
ensure they are fully aware of their legal rights and obligations.
