In an asset sale, the ownership of these acquired assets would change hands, with the buyer negotiating separately for each asset. In a stock sale, ownership of such assets does not change hands in the same way. The target still retains its ownership typically, even if the target has a new owner.
In a share deal, the shares of a company are transferred to the buyer, while in the case of an asset deal only certain or possibly all assets and liabilities are identified and purchased from the target company by the buyer.
Asset transaction means any transaction or related series of transactions whereby the Issuer transfers certain of its assets to ReGen AG through a sale, capital contribution or otherwise.
The benefit of an asset sale, from the buyer's perspective, is that it can select which assets and liabilities to acquire in the deal, compared to a stock sale or merger, where the buyer acquires all the assets and liabilities of the target.
Asset sales offer tax advantages and selective asset acquisition, but can be complex and require additional time and costs. Equity sales provide simplicity and continuity, but require the buyer to assume all liabilities. Both types of transactions involve important accounting considerations and post-close diligence.
In an asset sale, the ownership of these acquired assets would change hands, with the buyer negotiating separately for each asset. In a stock sale, ownership of such assets does not change hands in the same way. The target still retains its ownership typically, even if the target has a new owner.
What is an asset sale? An asset sale happens when you sell or transfer the assets of your company, rather than shares or stock. These assets can be tangible (eg machinery and inventory) or intangible (eg intellectual property).