| Commentary

204 Advantages of an asset purchase

| Commentary

204 Advantages of an asset purchase

Perhaps one of the main reasons for the seller to opt for selling the company’s assets rather than his shares in it is to avoid having to give the extensive warranties and indemnities mentioned above. Also, the Financial Services and Markets Act 2000 should have less impact on the transaction1. The seller may also value the opportunity to pick and choose which assets and liabilities to retain and which to dispose of2.

This ability to select the assets and liabilities which are to form the basis of the sale may

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