Asset Sale

A type of business sale where the buyer purchases specific assets of the company such as equipment, intellectual property, customer lists, and contracts, rather than the shares of the legal entity itself.

Asset sales and share sales have fundamentally different tax and liability implications for both buyer and seller. In an asset sale, the buyer avoids inheriting historical liabilities of the company, making it attractive for buyers but often less tax-efficient for sellers.

A founder sells her blog and its associated assets (domain, content library, email list, and brand) rather than the company that owns them. The buyer acquires only what they want without taking on the company's historical contracts or tax history, making the deal simpler for both parties.