| Commentary

111 Share and asset sales

| Commentary

(2) TAKEOVERS

A: INTRODUCTION TO TAKEOVERS

111 Share and asset sales

The main advantages of a share sale from the seller’s point of view include relative simplicity of implementation; a clean break from the business and any liabilities; and avoidance of employment claims (in most cases)1. An asset sale2, on the other hand, allows the seller freedom to pick and choose which assets to acquire and, with no transfer of tax liabilities, it avoids the need for extensive warranties and indemnities which are an invariable feature of share sale agreements. The benefits for the buyer with an asset purchase are that it

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