In selling a e-commerce business, what does an asset sale mean? What do you get? Can you still run the busines

Answer 1

Around here, no business is ever bought or sold in anything other than an asset sale. Its the only reasonable way to do things.

All it means is that the buyer is purchasing the assets from the seller. Those assets can be anything, including equipment, customer goodwill, etc, etc, etc. The point is that they buyer does not want to have to assume liability for the debts of the company. So, the seller takes the cash, and then presumably pays off his creditors from the proceeds.

The only thing to watch out for is that depending on the nature of the debt, the hard assets of the company may be encumbered. Make sure you can deliver or recieve clear title to any equipment.

As to running the business, yes, the owner can hire whomever they want to run the business, including the former owner.

Answer 2

It means that you sell everything the business owns (assets), but retain everything the business owes (liabilities). So your net proceeds will equal what the buyer pays you less what you owe your creditors. You get cash and/or stock in the acquiring company (the latter usually applies when the buyer is a publicly traded company).

Can you still run the business? Depends on whether the buyer wants you to. But if you sell the assets, you will run the buyer's business, not your own...

Answer 3

In my state an asset sale means that he/she is only buying your assets not your liablities - becareful this kind of sale can be harmful to you as a business owner - and no - you don't have any assets to sale - so no business!@

Answer 4

Means they're buying your equipment, website, etc. but not your debt. Also know as a liquidation sale.